Monday, July 26, 2010

Google Watch - Google M&A - Google Must Buy Zynga to Gain Leverage Vs. Facebook

Strange days indeed

Zynga is a phenomenal success, banking some $520 million in venture capital funding, $100 million of it coming from Google. Zynga is valued at $4.5 billion!

Jive Software, who most would argue is a solid provider of social collaboration software for enterprises, just banked $30 million and that's considered a big success in the current economy.

For Zynga to raise over half a billion dollars is astounding, especially for a company that offers free games by makes bank from "virtual goods," in which serious players buy items to advance in their social games.

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Which leads us to this: If social games are the root of financial success for Facebook, wouldn't it make sense for Google to get in on that action if it's going to slow Facebook's speedy roll to power on the Web?

Google Watch - Google M&A - Google Must Buy Zynga to Gain Leverage Vs. Facebook

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