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It was the first game Facebook introduced on its social networking platform. Zynga became the Facebook app developer with the most monthly active users in April , with 40 million people playing their games that month.
By August it was the first game on Facebook to reach 10 million daily active users. Zynga filed with the U.
At the time, the company had 2, employees. On June 26, , during the Zynga Unleashed conference, Zynga announced the "Zynga With Friends" network, aiming to connect players of Zynga game titles across multiple platforms.
The company unveiled the Zynga Partners for Mobile program to help increase Zynga's presence on mobile devices. In October , Zynga announced a partnership with bwin.
Consequently, investors decreased Zynga's valuation by million. He remained as Chairman of the Board. First quarter results for showed daily active user numbers fell from 53 million to 28 million year-over-year.
Less than one year later the office in Orlando closed. Gibeau's last position was as head of mobile for Electronic Arts. Before that he was President of Labels at EA, overseeing a large studio organization developing games for EA's top franchises.
Gibeau joined EA in and rose through the marketing organization before stepping into his first studio role in He joined Zynga's Board of Directors in August, On July 1, , the company filed its Form S-1 registration statement with the U.
Earnings per share were 1 cent, which is what analysts predicted. Words with Friends 2 had its best mobile revenue and bookings since its inception eight years before.
In addition, Zynga games are linked to offers from several of partners. Players can choose to accept credit card offers, take surveys or buy services from Zynga's partners in order to obtain game credits.
Players may also purchase game credits directly from Zynga via credit cards  or PayPal. From within the game, players can purchase the points for a fee: In March Zynga started selling prepaid cards for virtual currency at more than 12, stores across the US.
Zynga also sells advertising sponsorships within some games such as movie tie-ins and other brands. The revenue was split between Facebook and Zynga.
In February , it was announced that Zynga and Hasbro had partnered to create products based on Zynga properties and brands.
Only later did the company start to spend money on marketing its products. According to one analyst, Zynga can either fund the creation of new games to attract new users, or it can buy smaller games studios with new games which will bring in new customers.
In September , Gawker reported that Zynga had set up a "Platinum Purchase Program," a private club for their top spenders, allowing members to purchase virtual currency at favorable rates.
Some journalists questioned the viability of Zynga's business model. Ray Valdes questioned the long-term prospects for Zynga, saying that it would be difficult for the company to make new titles to replace old ones whose novelty is fading.
In an October article in The Wall Street Journal , Ben Levisohn said that Zynga has "issues that could limit its upside," such as its dependence on Facebook and its reliance on a small percentage of users and a small number of games for most of its revenue.
In July , after announcing disappointing second quarter results, some analysts speculated that the sale of virtual items may not be a long-term, viable business model.
Through , Zynga let players earn in-game rewards for signing up for credit cards or for a video-rental membership. Since then it began re-introducing the ads back in but with controls to monitor the kinds of ads that appear.
In early November it was estimated that about one third of Zynga's revenue came from companies that provide legitimate commercial offers, such as trading Netflix memberships and marketing surveys for in-game cash.
In , Zynga started to move employees to new headquarters, located in San Francisco's South of Market district. Zynga operates as a meritocracy in which employees are encouraged to be and are compensated for being great entrepreneurs.
He discusses the company's values, and he encourages the new employees to challenge those values. Women at Zynga , launched in , is an employee-led resource group that focuses on empowering women to succeed and become leaders in their careers and communities.
According to Stephanie Hess, VP of Communications at Zynga, who also leads Women at Zynga , the group strives to attract, hire and retain top female talent.
The Christian Science Monitor recognized the company's efforts to use a storytelling model to recognize the diversity of women employees.
The company has seasonal events, such as a Halloween party to which employees bring their children. Employees feel supported professionally as well as personally.
The company also offers free, onsite, gym and fitness classes, free breakfast and lunch each day, a shuttle service to the Bay Area Rapid Transit and CalTrain in San Francisco.
Each of the different locations offer different benefits to a certain extent. Prior to the company's IPO, when Pincus was still CEO, Zynga's corporate culture received some negative media attention for renegotiating the equity packages of four senior employees.
They had the option to leave and have a package, as happened with some other leaders, but we in addition to that offered them other positions at the company that came with different forward compensation.
When asked about the criticisms Zynga had received for its workplace environment, Pincus said the company strives to be a meritocracy  with a culture of leveling up through promotions.
Pincus told The New York Times:. The only way people will have the trust to give their all to their job is if they feel like their contribution is recognized and valued.
In Zynga donated a large sum to the University of Southern California to support the study of social mobile games, inclusive game production, and advancing diversity in the industry.
In , Entrepreneur magazine recognized Zynga as one of 11 companies which offer benefits to employees with fertility issues.
Huffington Post recognized Women at Zynga as a group that embodies the company's commitment to gender diversity. In , Zynga started a nonprofit organization, Zynga.
As of Zynga. On July 18, , Zynga filed an addendum to its Form S-1 detailing its relationship with Facebook, including the five-year agreement to use Facebook credits exclusively.
On October 11, , Zynga announced plans to create their own platform in which users can play the company's games. It was Zynga's first major step away from the social media giant.
At one point during Zynga made up 19 percent of Facebook's revenue, partly because of the special mutually beneficial relationship between the two companies.
In November , Facebook ended its special agreement with Zynga. Effective March 31, , Zynga was bound by the standard Facebook Platform policies.
In the fall of , Zynga signed a rental agreement for , square feet 25, m 2 of office space at the site of former Sega offices.
Many of Zynga's games involve players posting messages to non-players, often for in-game benefits. Many non-players have notably complained about such communications created by those games that appear to them as "spammy.
Zynga has been accused several times of copying game concepts of popular games by competing developers.
Its gameplay, design, graphics, avatars, and even in-game items are almost identical to the ones in Restaurant City. In September , SF Weekly reported that an employee recalled Mark Pincus advising him to "copy what [Zynga's competitors] do and do it until you get their numbers.
Zynga founder Mark Pincus has dismissed the criticisms, saying that competing video game makers have always released similar titles for each genre of game.
Zynga subsequently renamed and changed the thumbnail images of all cars that were branded Nissan and Infiniti to "Sindats" and "Fujis" with the thumbnails changed.
In September , Zynga initiated trade secrets lawsuits against Playdom and 22 other rivals,  including Green Patch which Playdom acquired in November These lawsuits were finally settled in November Commentators said that significant prior art exists for the concept.
In January , Techdirt reported that Zynga sent a cease and desist letter to Blingville alleging trademark infringement for its use of the letters "ville" in the name of a proposed Facebook game.
Blingville filed a suit for declaratory judgment that it did not infringe on a Zynga trademark. In November , Inside Mobile Apps wrote that Zynga's lawyers demanded that mobile game developer Latman Interactive abandon its trademark registration for the game Quackville.
On October 14, , Zynga filed a lawsuit against a former general manager Alan Patmore, for allegedly misappropriating trade secrets.
The suit claimed Patmore misappropriated trade secrets and was in breach of contract. In July , a class action lawsuit was filed against Zynga, alleging that Mark Pincus and some other insiders were allowed to sell shares before disappointing Q2 results were revealed.
The complaint was therefore forwarded to the Irish commissioner of data protection. In August , the San Francisco city attorney's office complained about the firm's guerrilla marketing campaign for its Mafia Wars game that pasted fake money on city sidewalks, calling it "vandalism".
In , Zynga, in conjunction with Hasbro released several physical board games based on the various properties in the Zynga game library. These games were released under an imprint of Hasbro called "Hasbro Gaming.
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