Dirk Knemeyer

On Zynga’s business model

On Zynga’s business model, February 22, 2011

A short comment contextualizing the prediction could go right here

As reports of Zynga, about raise another $500 million dollar surface, which would skyrocket their value to $10 billion dollars, the backlash is beginning. More and more observers are pointing out that virtually all of Zynga’s success is due to the success of Facebook. Like any parasite they will only be as healthy and well-fed as their host organization allows them to be. If the host dies, so do they. While Facebook’s position remains stratospheric, it is ultimately a dead-stupid business strategy for a 10 billion dollar company to hitch their success to another company, one that has been embroiled and run afoul of potential government legislation. Here’s hoping for Zynga’s sake that they put some of their hundreds of millions towards creating a platform of their own.