Zynga: Out to Pasture or Buying the Farm?
By one measure, Zynga’s FarmVille on Facebook (and MSN) is extremely successful. The measure being dedicated and addicted players numbering in the millions each day. By another measure, Zynga isn’t faring very well at all, and that’s making money. Despite a valuation of over $3 billion, the company is struggling to find a way to convert virtual game currency into real dollar spend. How the internet ecosystem manages to reward the lack of real and sustainable value creation is astonishing to those on the outside — but good for those on the inside. Would that all companies could bask in the glory of venture capital and IPO bubbles on such flimsy financial foundations. Quack! Zynga has been on company deathwatch for a while. Read on to see some of its…