Filed under: Electronic Arts (ERTS), Small business
The smart money continues to pour into social networking deals. The latest comes from a tier-one VC: Kleiner Perkins Caufield & Byers.
This day, the firm announced a $29 million round for Zynga Game Network. Essentially, the company combines two hot categories - social networking and casual games.
No doubt, this deal is a massive validator. After all, Kleiner only adores companies that have the potential of being game-changers.
So, what makes Zynga different? Well, for the most part, the company has devised innovative techniques to create highly addictive games (some say the process is scientific). Plus, there are opportunities to expand onto mobile platforms and to even create virtual worlds.
Keep in mind that Kleiner has invested in a variety of break-out gaming companies in the past, such as Electronic Arts Inc. (NASDAQ: ERTS). In fact, a Kleiner partner, William “Bing” Gordon - the former CEO of EA - will come on the board of Zynga.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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