The Rise and Fall of Video Game Virtual World Created By Zynga

The new Infographic “The Rise and Fall of Zynga” was shared by Anna Mininkova for the Sports Techie community blog readers to help you understand how a cool social gaming startup company can get funded with $359 million, followed by expansion at Internet speed, then crash as fast as a NASCAR race car pushing towards the finish line.

Zynga
Source: GraphicDesignDegreeHub.com

Our thanks to Anna for this information and graphic design degree hub link: http://www.graphicdesigndegreehub.com/zynga/.

Sports Techie, Many social gamers may not know that Zynga was named after a Zinga, an American Bulldog once owned by Pincus. You may know however that the rapid scaling of Mafia Wars, FarmVille and CityVille helped Zynga secure millions in venture capital seed funding and subsequent rounds of capital investment to build their infrastructure, hire top employees and business develop revenue streams.

I played Mafia Wars on Facebook when it was just beginning and enjoyed it for the novelty and gaming entertainment. My nephew in Idaho and some friends were Farmville titans who were part of the one million daily players who made up 20 percent of Facebook users added to Zynga’s subscription platform. CityVille crushed it with a launch that saw over 100 million monthly active users in just a mere 43 days. The pace of new user adoption of Zynga’s social games made the money roll in by accredited investors.

At the end of 2011, Zynga went through the largest IPO since Google in 2004 and their company culture flourished along with happy International gamers. ZNGA started out at an amazing $10 a share, peaked at $14.50 in March of 2012, and was soon hitting rock bottom crushing shareholders value with a stock price of $2.09 per share. Along their growth path, they diversified by acquiring 11 companies between 2010 and 2011.

The rise and fall graphic makes it easy to see the amount of revenue in considered net income in during 2009 and 2010, earning $30 million, followed by a whooping $90 million. Losing $404 million in 2011 was an indication that their social gaming platform was not performing as projected and the downfall continued into 2012 with additional loses of $209 million until finally stabilizing somewhat in 2103 with losses totaling $37 million.

Of course, like most failing medium to large sized businesses, one of the first ways to right the ship is to cut costs by elimination employee salaries which Zynga did to the tune of 520 people, saving in excess of $60 million towards the gaming companies bottom line. Now in 2014, their many corrections has amounted to fewer employees today than when they went public.

Please, I speak for many others when I request that you stop sending us Candy Crush invites, it is annoying and reminds me of why Zynga went from being the cool company on Facebook and the web to just another social gaming company trying to make ends meet and keep the lights on.

I will see ya when I see ya, THE Sports Techie @THESportsTechie – http://twitter.com/THESportsTechie

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