Saturday, July 02, 2011

Zynga Files for IPO - WSJ.com

A potential ~$20B valuation for a company that’s selling 94% virtual stuff

During the first quarter of 2011, 94% of Zynga's $235 million in revenue came from virtual goods, while the remainder was generated by advertising, according to the company's IPO filing.

Zynga's filing also shows how it accounts differently for its revenue, depending on the type of virtual goods sold. Revenue from "consumable" virtual goods like energy is recognized by the company immediately after a player's game avatar consumes it.

Zynga Files for IPO - WSJ.com

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