I find it hilarious that after the fiasco that was the DotCom era that 10+ years later people are falling for the same scam all over again.
You get companies like Facebook, LinkedIn and now Zanga. Companies with little to zero long term probability of survival claiming ridiculous revenues while presenting no evidence of where that revenues is coming from.
Sure, unlike the DotComs of Y2K they actually have a "product", but none of them have a "real" product ... only a temporary fab with no long term vision. Anybody dumb enough to pay a premium for "toilet paper stocks" is nothing more than an clueless idiot.
We’ve been hearing talk about the Facebook game publisher’s plans to go public for a while now, and according to Kara Swisher at All Things D , Zynga might be filing for IPO as soon as this week.
The company responsible for turning millions of Facebook users into virtual farmers, city planners, mobsters, et al, is currently valued at around $10 billion, but is expected to price itself higher in a public offering — especially considering what’s been happening with LinkedIn, which now has a valuation ($9 billion) that’s 2x its estimated pre-IPO worth.
Here are some other fun factoids that show Zynga’s powerful impact on Facebook, the interactive entertainment industry and popular culture as a whole:
- 250 million people play Zynga games every month.
- CityVille, Facebook’s #1 app, has 90 million monthly users.
- FarmVille, Facebook’s #2 app, has 35 million monthly users.
- Zynga scored a recent coup by partnering with Lady Gaga to release tracks from her new album to FarmVille players before anyone else, and has worked with other celebs like Snoop Dogg and Dr Dre.
- Last year, Zynga reportedly brought in $850 million in revenue and $400 million in profit (and, according to the Swisher article, “sources say the filing will reveal stronger numbers than that).”
- In 2010, Zynga went on a hiring spree, bringing in 800 people. The company now has 1,500 full-time employees spread across 13 offices in six countries.
With Zynga, LinkedIn, and other tech companies jumping onto the IPO bandwagon, it’s certainly starting to feel like the late ‘90s all over again. But it would be wise to remember how that initial tech/internet bubble ended up before we get too wrapped up in all the unbridled enthusiasm.
