Zynga, the largest social game provider, today announced that Digital Sky Technologies (DST), a leading global internet investment group, along with other investors, has agreed to purchase approximately $180 million of the company’s securities. A portion of the investment will be used to fuel Zynga’s growth and the rest will be used to facilitate liquidity for employees and investors.
DST comprises the majority of the new investment, followed by Andreessen Horowitz and Tiger Global as new investors in Zynga, and Institutional Ventures Partners, a current investor who has added to its position in the company. Zynga’s other major investors include Kleiner Perkins Caufield & Byers, Union Square Ventures, Foundry Group and Avalon Ventures. As a passive investor, DST will not hold a seat or have observer rights on Zynga’s board of directors.
“Social games are enabling millions of people around the world to connect and play together everyday. We are excited about our relationship with DST as they are a global player dedicated to creating services that are meaningful to consumers in the long term,” said Mark Pincus, founder and CEO of Zynga. “The investment from DST allows us to continue delivering on the promise of social games for consumers, making fun the biggest way for people to interact.”
“We share in Zynga’s mission of connecting people through games and believe they are in a solid position with their team, offerings and market share to succeed in a dramatic way,” said Yuri Milner, chief executive of DST. “Our earlier investment in Facebook and now in Zynga underscores our premise that social networking and social entertainment will define the next generation of the web.”
Zynga today has over 230 million monthly active users playing its games. These include FarmVille, Café World, Zynga Poker, Mafia Wars, YoVille, FishVille and the recently announced PetVille, which is currently the fastest growing social game online. More than one million users purchase virtual goods across Zynga games, from tractors to home decorations, accounting for 90 percent of the company’s revenue. In addition, FarmVille players recently raised over $700,000 for the welfare of children in Haiti by purchasing virtual goods in the game.
About Zynga
Zynga, founded in 2007, is the largest social gaming company. Zynga’s games are available on Facebook, MySpace, Bebo, Friendster, Tagged, Yahoo! and the iPhone. Zynga is headquartered in Potrero Hill, San Francisco.
About Digital Sky Technologies
DST is the largest internet investor in the Russian-speaking and Eastern European markets and one of the leading investment groups globally to exclusively focus on internet and internet-related companies. DST is a privately held holding company backed by leading Russian and Western financial institutions.
For more information, visit Zynga or Digital Sky Technologies.
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