Zynga Look To Grow With $250 Million Investment

Social games developer Zynga who are best known for being behind the Facebook games “Farmville”, “Mafia Wars” and “Cityville” are looking to raise $250 million, which would pump up their valuation to around $7-9 billion.

According to SF Gate, the startup raked in a sweet $450 million of profit last year with a total revenue figure of $850 million. Those figures are expected to be even better in 2011 with a huge growth predicted for Zynga this year. The potential investors are anonymous, but the figure of 1/4 billion dollars has been mentioned as the expected figure.

The primary method of revenue generation is from the sale of virtual goods on their social games and also from advertising. Bloomberg has reported that the virtual goods that are sold are relatively cheap; however they are purchased in large quantities, with credits being bought in blocks. Typical items that are sold are tools and seeds in “FarmVille” or poker chips in “Zynga Poker.”

Zynga is looking to rival the other startups around it, like LinkedIn the social network for professionals and also Pandora the internet radio service. Facebook and Twitter are much further ahead with reported values of $50 billion and $10 billion respectively. If Zyna can secure this huge investor then they could be well on their way to becoming one of the big boys in the social league.