Zynga acquires new Facebook app after raising USD29m

Social gaming network Zynga is acquiring YoVille, a virtual-world app for Facebook with 150,000 daily active users, after raising USD29m in a second round of funding. IVP led the round, along with previous investors Union Square Ventures, Foundry Group and Avalon Ventures.

Zynga develops online games for Facebook and other social network platforms. To date, the company has launched versions of classic games, such as Risk, Boggle, Battleship, and Texas Hold’Em Poker, claiming to attract 2.9m daily active users across Facebook, MySpace and other social networks.

CEO Mark Pincus plans to use the new funds, together with the USD10m raised in an earlier round, on production values and marketing. Pincus predicts that the world of casual social gaming and online video games will converge, meaning that new games launched on the market will have to be “highly graphical and immersive”.

As part of the funding deal, Kleiner partner Bing Gordon will take a seat on Zynga’s board.

Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast; https://www.game-consultant.com

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