Google invested $200 mln in Zynga to beat PayPal and to conquer e-gaming market

July 13, 2010 - 7:17am | News | Other themes |
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Google invested $200 mln in Zynga to beat PayPal and to conquer e-gaming market

 

It became known that last month Google has secretly invested an undisclosed amount of money   in Zynga, a developer of games for Facebook (Mafia Wars and Farmville). According to Techcrunch the price is something between $100 million and $200 million. 

Some sources say that this highly strategic alliance could help Google arrange a good position for Google Games on the online gaming market that becomes more and more profitable. 

At the same time this partnership can influence world’s biggest payment system PayPal. It is supposed that Zynga is the biggest single customer of PayPal, second after eBay. Having partnered Zynga Google may offer the company to replace PayPal with Google Checkout.  

However some analysts say that it is too early to make such casts ahead. Despite the fact that both Google Checkout and PayPal are third-party processors they are different. So, for example PayPal works with bank accounts and Google Checkout is linked to credit and debit cards. Also, Google Checkout is focused on the Us market only and PayPal is an international payment processor widely used in 55 countries of the world and operating with the euro, the pound, the Canadian dollar, the yen and the Australian dollar. Though Google may reconsider it politics and make its payment processor more world-oriented.

 

 




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