As we approach the end of this business week and look back at the week that was, there’s no doubt that one of the biggest news stories this week was about the Facebook IPO filing. Similar to the early days of Microsoft when it’s employees became millionaires on the success of the company, the Facebook IPO will make many of their employees millionaires as well.
Although the stories this week have been about the social networking site itself, the IPO filing did reveal some interesting findings, one of which was the importance of the game developer Zynga to Facebook’s bottom line. Zynga is the company that made both Farmville and CityVille, two of the more popular Facebook games available today. Zynga has always been an important partner to Facebook and today, we can put a number behind this partnership as we learn that Zynga generated 12% of Facebook’s revenue last year. As such, the relationship of the two companies is intertwined and the assumption is that as one company does well, so will the other.
It’s for this reason that this week, we have seen Zynga’s share price sky rocket. In fact, the change in share price has resulted in Zynga’s market cap surpassing the $1 billion mark. At the beginning of this week, Zynga shares could be purchased for $10.96 a piece and at its peak this week, the shares were trading at $12.81.
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