Zynga

[9] Zynga launched FarmVille on Facebook in June 2009,[2][10] reaching ten million daily active users (DAU) within six weeks.

[22] Zynga was founded in April 2007 by Mark Pincus, Eric Schiermeyer, Justin Waldron, Michael Luxton, Steve Schoettler, and Andrew Trader under the name Presidio Media.

[28] Soon after, the company opened its first external game studio in Baltimore, Zynga East, led by Brian Reynolds.

[37] Zynga filed with the U.S. Securities and Exchange Commission (SEC) to raise up to $1 billion in an initial public offering on July 1, 2011.

[38] On November 28, 2011, the Finnish game developer Rovio Entertainment rejected an acquisition attempt from Zynga worth $2.25 billion.

[44][45][46] On June 3, 2013, Zynga announced layoffs of 520 employees — roughly 18% of its workforce[47] — and closed offices in New York, Los Angeles, and Dallas.

[60] In April 2014, the company announced its new hire of Alex Garden, co-founder of Relic Entertainment and former Microsoft Game Studios executive.

[67] As of January 2018, Zynga had 1,681 employees,[68] approximately 80 million monthly active users,[69] and a market capitalization of $3.39 billion.

Ray Valdes questioned the long-term prospects for Zynga, saying that it would be difficult for the company to make new titles to replace old ones whose novelty is fading.

[25] Tom Bollich, a former Zynga investor, said that it is impossible to make a cheap viral game, and that retaining customers is difficult.

[139] In July 2012, after announcing disappointing second quarter results, some analysts speculated that the sale of virtual items may not be a long-term, viable business model.

"[140] In 2012 Zynga took steps to turn its business around, which included introducing new Web, mobile, and multiplayer games and developing a gambling game to be introduced outside the U.S.[141][142] The company worked to increase advertising revenues, which were up to 45 percent in Q2 2012 compared to the previous quarter and increased to 170 percent year-over-year.

In November 2009 the company removed all "lead-generating" ads, relying instead on revenue generated by the 1-3 percent of players that pay for in-game items.

[125] In early November 2009, it was estimated that about one-third of Zynga's revenue came from companies that provide legitimate commercial offers, such as trading Netflix memberships and marketing surveys for in-game cash.

[144] Because of criticism and complaints that some ads were scams, on November 2, 2009, former CEO Mark Pincus said that Tatto Media, a major offer provider that enrolled users into recurring cell phone subscriptions, and the worst of the lead generator scam, had already been removed from Zynga and was banned, in addition to requiring providers to filter and police offers before posting to their networks.

[145] In 2011, Zynga started to move employees to new headquarters, located in San Francisco's South of Market district.

[146] Zynga's headquarters, nicknamed "The Dog House",[147] features a coffee shop, gaming arcade, gym, basketball court, and wellness center.

[148] At its San Francisco headquarters, Zynga Founder Pincus's goal was to create a "playful gaming environment" that evokes a "fantasy land.

"[147] Zynga employees, also referred to as "Zyngites", enjoy perks such as free gourmet meals, access to an in-house nutritionist, and personal training.

[149] In November 2011, The New York Times reported that Zynga "operates like a federation of city-states" with each of its games, such as FarmVille and CityVille, run by autonomous teams.

This culture reportedly fostered "fierce internal competition" and caused some employees to complain about long hours and stressful deadlines.

[155] At one point during 2011, Zynga made up 19 percent of Facebook's revenue, partly because of the special mutually beneficial relationship between the two companies.

"[138][203] In September 2010, SF Weekly reported that an employee recalled Mark Pincus advising him to "copy what [Zynga's competitors] do and do it until you get their numbers.

"[138] NimbleBit founder Ian Marsh has accused Zynga of copying its award-winning Tiny Tower game to create Dream Heights.

[223][224] In October that year Zynga and Kobojo settled the suit with neither party making any payment as part of the settlement.

[233] On October 14, 2012, Zynga filed a lawsuit against a former general manager Alan Patmore, for allegedly misappropriating trade secrets.

[235] In July 2012, a class action lawsuit was filed against Zynga, alleging that Mark Pincus and some other insiders were allowed to sell shares before disappointing Q2 results were revealed.

[238] In March 2015, a district judge ruled that plaintiffs can pursue a lawsuit against Zynga on claims executives inflated the company's value prior to its 2011 initial public offering by concealing weaknesses in its R&D pipeline of new games, numbers of users and their purchasing patterns, and other key metrics.

[242] Davis Elen Advertising took responsibility for the ad campaign and agreed to pay the city of San Francisco $45,000 in fines for illegal marketing tactics.

[243][244] In September 2019, a Pakistani hacker that goes by the name Gnosticplayers claimed to have hacked into Zynga's database of Words with Friends players and gained access to the 218 million accounts registered there.

Employees watch the 2014 FIFA World Cup during a scheduled break.
Zynga headquarters in San Francisco in 2016
Zynga HQ