Google drops $100 million in Zynga

Zynga.Everyone knows Farmville as a Facebook phenomenon, but the people at Zynga are getting to know it as a cash cow. The Facebook game has gotten so much attention that Google has decided to invest more than $100 million in Zynga, supposedly in preparation for the launch of Google Games.

Can Zynga really stand as the cornerstone for Google’s Games operation? Absolutely. The company is projected at $350 million in revenue for the first half of 2010, half of which is actual operating profit. Total profit for 2011 is expected to be over a billion dollars. A billion, people. With a “b.”

Here’s TechCrunch on why Zynga is so important for Google:

Zynga continues to work on high level strategic business development deals. The reason these deals are so attractive to companies like Yahoo and now Google is this – Zynga allows them to rebuild the massive social graph, currently controlled by Facebook. For whatever reason people love to play these games and get passionately addicted to them, coming back day after day. That’s helped Facebook become what it is today. Google, Yahoo and others want some of that magic to rub off on them, too.

Who knew a silly social game could make such a huge impact.


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