The majority of Zynga’s more than $1 billion of revenue in sales last year came from games on Facebook. I have a Facebook account, but am not on it frequently. Moreover, I have never played Farmville (even though, ironically, I live in Idaho). With $1 billion in revenue, it appears that I may be in the minority.
In any event, Zynga who is coming to the public markets with sales essentially flat is looking to decrease its dependence on Facebook. It is developing a new social networking site, named Project Z. In theory, this appears to be a good move, but what will Facebook think, if anything?
It will be interesting to see how the Street prices this offering.