Posts Tagged: "social gaming"

Looking at the Zynga IPO, A Patent and Business Perspective

The question remains in the mind of many, however, whether Zynga is a company worth investing in given its near complete dependence on Facebook for revenue. If you actually read the Zynga S-1 filed with the Securities and Exchange Commission you will likely be scared out of your wits by the risk the company lays out in exceptional detail. Facebook is the primary distribution, marketing, promotion and payment platform for Zynga games, and the company generates substantially all of its revenue and players through the Facebook platform. Not exactly the kind of diversification that one would wish for, making Zynga completely dependent upon existing Facebook agreements and the extension thereof. You will likely also be underwhelmed by their IP portfolio, particularly their patent portfolio.