CBS San Francisco

MENLO PARK (CBS / AP) — Facebook’s long-awaited IPO filing lifted the stocks of many Internet companies, including recent laggards Zynga and Groupon. But analysts said the halo effect may fade, because some companies basking in Facebook’s glow just aren’t as financially sound as the world’s largest social network.

Zynga Inc. was getting the best ride on Facebook’s coattails Thursday. Its stock jumped nearly 17 percent to close at $12.39 – a new high. There’s good reason for that. Almost all of Zynga’s revenue comes from addictive games like CityVille and Mafia Wars that are played on Facebook. The social network’s initial public offering documents revealed, for the first time, that 12 percent of its $3.7 billion in revenue last year came from Zynga.

Some of that revenue came from the 30 percent “toll” that Facebook takes on in-game purchases, the rest came from ads that Zynga bought on the…

View original post 408 more words

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s