Google Invests At Least $100M In Zynga

Web behemoth Google has invested between $100 and $200 million in
Zynga in an under-the-table deal, according to multiple sources
speaking to Tech Crunch. This news comes three months after the announcement of a
deal between Zynga and Yahoo to integrate Zynga's games into all
Yahoo! platforms, including Yahoo! Games, Yahoo! Messenger, and Yahoo!
Mail. Though the market penetration of Google Apps and Gmail is still a
fraction of Yahoo's userbase, the steadily rising market share of
Google Chrome could make it a very lucrative platform for Zynga
games in the future.

On
Google's end of things, the deal could be a potential boon for Google
Checkout, which is still struggling to make gains against
microtransaction go-to Paypal. Zynga is estimated to make up nearly 44%
of the market for social gaming, with reports of over $1 million in
revenue per day. 90% of this revenue comes from the sale of virtual
goods, so a deal like this resulting in a switchover from Paypal to
Google Checkout as the payment option for these goods wouldn't be out
of the ordinary. 

Google might also arrange a deal similar to the one
struck between Zynga and Facebook back in March by introducing its
own virtual currency similar to Facebook Cash. Combined
with $147 million from Softbank in June and a $180 million
investment from Digital Sky Technologies in December of last year,
the as-yet-unconfirmed sum from Google would bring Zynga's venture
capital for 2010 into the area of roughly $500 million.

– Elizabeth Ellis

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