Facebook game maker Zynga is reportedly in negotiations to raise funds of around $250 million, which has led some experts to valuate the company at between $9 billion and $10 billion.
The company is in talks with investment firms T. Rowe Price Group Inc. and Fidelity Investments, according to people in the know, Bloomberg reported.
Phil Black, the co-founder of True Ventures, said in a statement “They manage billions of dollars of capital and even in a $100 million IPO their allocation of that probably isn’t near what they would like to have. A private transaction where they can buy a big chunk of stock -- that’s a good move on their part.”
Zynga is the firm behind blockbuster Facebook games like CityVille, FarmVille and Mafia Wars. Investment firms are vying to put money into emerging technology start-ups and web firms, in order reap the benefits when they eventually decide to go public.
Facebook itself was given a $50 billion valuation by Goldman Sachs following its latest round of funding.