CityVille and FarmVille-maker Zynga is raising $500 million at a $10 billion valuation, Kara Swisher reports.The money is from big investors T. Rowe Price, Fidelity and Morgan Stanley.
Maybe you’re mutual fund-stuffed 401(k) just got some Zynga exposure.
Zynga makes all its money selling virtual goods to Facebook addicted to Zynga’s games.
Tiny amounts of money make the games progress faster.
It’s a model that works, obviously. Zynga revenues should reach $1 billion, sources tell Kara.
For context, consider that NASDAQ-traded Electronic Art’s market cap is around $6 billion.