Zynga

1
Zynga

• Company Presentation
• Sai Sailesh Kopuri
• 3/7/11

2
Products

• Social Games
• Virtual World Games
• Role Playing Games
• Card Games
• Puzzle Games
• Famous Games
• FarmVille - 63m users at its peak
• CityVille - Fastest growing game in history,
  first 100m users
• MafiaWars
• YoVille

3
History

• Founded in July 2007 by 6 people including Mark
  Pincus (Current CEO).
• The company is named after an English Bulldog
  once owned by Mark Pincus. 
• Received 29m funding in July 2008.
• Appointed former EA Chief Creating Officer to the
  board
• Bought YoVille in 2008

4
Current Scenario

• Ten major games
• 13 studios
• Six countries
• 1300 employees
• Six acquisitions in six months
• 400 people on new intellectual property (IP)
• 320 million users

5
Money

• All games are free
• Virtual Currency
• Direct credit card payments to buy virtual
  products
• Replenish energy for playing the game faster than
  the normal speed.
• Partner businesses - Take surveys or buy services
  from partners to earn game credits
• Depends on small number of people spending large
  amounts of money in the game
• In March 2010, Zynga started selling prepaid
  cards in stores across US
•     

6
More Money Talk

• Total funding 519m
• 2010 Revenue 850m
• Profits 400m
• Recent valuations indicate Zynga is worth around
  6-7b, surpassing EA (5.3b)
• Expected IPO in 2013

7
Target Market

• Social Networks
•     Facebook - Largest Facebook App
•     MySpace
•     Yahoo
• Mobile Devices
•     iPhone
•     iPad
•     Android Devices
•     Mobile Web

8
Competitors

• Electronic Arts
•    Recently acquired PlayFish
• Playdom
• Digital Chocolate
• CrowdStar
• Zynga is acquiring companies aggressively

9
Secret Sauce

• Creator of widespread Social Gaming
• Other companies playing catch up
• Numbers
• 10 of all internet users have played a Zynga
  game of some kind
• Around one petabyte (1000 terabytes) every day
• Servers are capable of handling a load of around
  three billion simultaneous neighbor connections
• Aggressive expansion strategy
• Leveraging Social networks

10
Prediction

• Potential to become the Google of Social Gaming
• Create its own social gaming network
• Recent News
• Hired entire 16 member team of MarketZero which
•         operates  PokerTableRatings
• Dreamworks CEO Jeffrey Katzenberg appointed 
•        to the board of directors. 

11
QA