Social and mobile gaming have long been synonymous with Zynga, but the company has been quietly going about its business for the last few years. Its growth was largely due to a partnership with Facebook that came to a close back in 2013. Around the time of the partnership’s end, Zynga hired Microsoft’s Don Mattrick, President of Interactive Entertainment Business, to lead the company into a successful future with continued growth. Mattrick’s tenure didn’t last very long as the two parties split in April 2015. So Zynga was left putting one of its co-founders, Mark Pincus, back at the helm.
A turnaround hasn’t happened quick enough because Zynga’s headquarters at 650 Townsend Street in San Francisco is up for sale.
The reason for Zynga wanting to abandon its current headquarters could be because of empty space. Last year, the company cut 18% of its staff. Zynga’s bottom line is also nothing like what it once was; saving by cutting staff and selling off a valuable property is an easy, attractive option. Selling the headquarters could actually provide Zynga with more money than its core business does in an entire year.
Zynga bought 650 Towsend Street in 2012 for $228 million, or about $317 per square foot. It’s believed any offer for the building and its land with generate a profit for the company because the land alone is valued at over $133 million. One estimate values the building at a price nearing $800 per square foot. This could mean Zynga will score $573.6 million from a buyer wanting the property.