Jim Heaphy
Zynga has long been experiencing difficulties with development of the business models and strategies to promote its products. It’s not a surprise that the creator of well-known FarmVille is facing financial problems on this ground. The troubles grew so big that the company now is forced to sell its own office.
There is nothing special but information that got into hands of journalists from Halting Problem.
The once-powerful Silicon Valley player announced sale of its office in San Francisco in February this year. In 2012, the company purchased the premise for $ 228 million. Halting Problem’s sources estimated that the building currently costs about $ 540 million.
It looks like Zynga will probably will be able to earn good money on the office’s sale. The most interesting thing is the company’s total market is around $ 2 billion, and the cash amount is $ 1.5 billion. It is easy to calculate that the developer’s business is estimated at about $ 500 million. This is less than the amount the company can gain from the sale of its office.
Recall that Zynga is responsible for the creation of popular social games like Farmville, Words With Friends and others.
In 2011, when the organization came to the IPO, it was esteemed at $ 10 billion. The company emlpoyed about 3 thousand people. Now, there are about 1,700 people working in there, and the market capitalization has been steadily declining for already some time.
According to many experts, one of Zynga’s key problems is that the company could not timely restructure its business model in accordance with requirements of the ever-growing industry of browser and mobile games.
A game analyst commented on the situation with the company's sales offices as follows: "I'm not sure what amazes me more: the value of real estate in San Francisco or the fact that someone still plays FarmVille?
source: medium.com/halting-problem
There is nothing special but information that got into hands of journalists from Halting Problem.
The once-powerful Silicon Valley player announced sale of its office in San Francisco in February this year. In 2012, the company purchased the premise for $ 228 million. Halting Problem’s sources estimated that the building currently costs about $ 540 million.
It looks like Zynga will probably will be able to earn good money on the office’s sale. The most interesting thing is the company’s total market is around $ 2 billion, and the cash amount is $ 1.5 billion. It is easy to calculate that the developer’s business is estimated at about $ 500 million. This is less than the amount the company can gain from the sale of its office.
Recall that Zynga is responsible for the creation of popular social games like Farmville, Words With Friends and others.
In 2011, when the organization came to the IPO, it was esteemed at $ 10 billion. The company emlpoyed about 3 thousand people. Now, there are about 1,700 people working in there, and the market capitalization has been steadily declining for already some time.
According to many experts, one of Zynga’s key problems is that the company could not timely restructure its business model in accordance with requirements of the ever-growing industry of browser and mobile games.
A game analyst commented on the situation with the company's sales offices as follows: "I'm not sure what amazes me more: the value of real estate in San Francisco or the fact that someone still plays FarmVille?
source: medium.com/halting-problem
