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Zynga files long-awaited IPO plan

July 02, 2011|By Alex Pham and Dawn C. Chmielewski, Los Angeles Times

Zynga disclosed to potential investors that as people increasingly access the Internet through smartphones, tablets and televisions — which are less powerful and have less capacity than computers — they may find the games it develops for these devices less compelling.

Moreover, social gaming is a new, fast-changing segment of the interactive entertainment world, and Zynga plans to continue investing significant resources to enhance its existing games and introduce new ones to hold players' interest. A passionate core of gamers accounts for nearly all of its revenue.

For Zynga, growth could be an issue, because some believe the firm is starting to saturate the available audience on Facebook.

"Zynga is the largest developer on the platform by far," Smith said. "The last couple of times they've launched new games, they regularly achieve 100 million active users. With 600 million people on Facebook, it makes sense that there's some natural saturation point."

alex.pham@latimes.com

dawn.chmielewski@latimes.com

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