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What's Farmville and MafiaWars worth?

Discussion in 'Sports and News' started by Stitch, Feb 15, 2011.

  1. Stitch

    Stitch Active Member

    Zynga, the creator of Farmville and Mafia Wars is valued at $7 billion. The company bring in $400 million in profit on $800 in revenue. Amazing numbers, but a dangerous business model because the company uses Facebook as its main platform. If Facebook cuts off Zynga one day, those profit go poof.

    http://online.wSportsJournalists.com/article/SB10001424052748703515504576142693408473796.html?mod=WSJ_Tech_LEFTTopNews
     
  2. Batman

    Batman Well-Known Member

    Hasn't it been well-established that the standard business model for online ventures has nothing to do with long-term profitability? You get in with a good idea, find a way to make it go viral, then cash out for big bucks when the first deep-pocketed suitor/competitor comes calling.
     
  3. old_tony

    old_tony Well-Known Member

    And then laugh your ass off when that deep-pocketed suitor can't make squat off the entity for which they paid you billions. [/MarkCuban]
     
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