PeHUB’s Dan Primack just pointed out that if FarmVille-maker Zynga has indeed raised $100 million from Google, “that would bring its overall VC fundraise to over $340 million.”
Meanwhile, Zynga has reportedly never spent any of that money, is profitable, and will reach $700 million revenues in 2009.
So what’s all that money for?
The company won’t comment, but a source close to Zynga tells us CEO Mark Pincus is “building a war chest for M&A and anything else that comes along.”
We’d speculate Zynga is stock-piling cash in order to buy out any of its smaller rivals that start to get too close in terms of daily active users on Facebook. Already this year, Zynga bought Serious Business. Who’s next? Crowdstar? Playdom?
Back in December 2009, shortly after EA acquired Zynga rival Playfish for something close to $400 million, Zynga CEO Mark Pincus told VentureBeat, “We would have liked it to be in the running to acquire or merge with Playfish.”
“If our timing were different and we would have done this deal a quarter earlier, we might have been in a better position there.”