Google Invests In Zynga – Prepares Google Games
Google Invests In Zynga – Prepares Google GamesJul 22 2010 - Google - Farhad Divecha
A post recently published by TechCrunch says that Google recently invested a substantial amount of money in the social gaming site Zynga.
Though the information has not been confirmed by Google itself, TechCrunch claims to have checked with several sources that Google has indeed invested between $100 – 200 million in Zynga.
The deal which is believed to have gone through about a month ago, is likely to be followed by a strategic partnership between the two companies.
The investment has been made by Google as they are believed to be in the process of launching Google Games by the end of the year.
The partnership with Zynga will not only allow Google to have a good support for building up their social games, but will also indirectly help to attract more users to their social site through the games. If available statistics are to be believed, about 155 of Facebook users play FarmVille daily.
Zynga is known to have played a similar role, to establish Facebook as a leading social network in the past.
If Google is able to replace PayPal, with Google Checkout as the main mode of payment for Zynga games, that will be an additional benefit to them.
In the mean time, Zynga has been doing pretty well for itself. They have raised $500 million in the last year, and their revenue for the first half of this year is $350 million.
Facebook on their part will have to remain on their toes, if they do not wish to lose their top ranking in the social network market. They have also recently signed a 5 year distribution deal with Zynga, which may not seem very prudent now.