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ZNGA's market cap was 10x in 2012, when they bought the location for the 340/sq foot mentioned in the article. They occupied 65% of the building, which is a goo
by narsil 11y ago
ZNGA's market cap was 10x in 2012, when they bought the location for the 340/sq foot mentioned in the article. They occupied 65% of the building, which is a good capacity to be at if you're planning on growing.
Regarding buy vs. rent, I think at the time it made sense, if they were planning on sticking around for 5+ years, given the price per square foot they paid and the fact that they would fill up the entire space.
- spikels 11y agoHard to argue today that is was a mistake to buy it in 2012. Zynga was flush with cash after the IPO and "well timed" secondary offering[1]. That building is probably worth over $500 million today. Given that the entire company is worth around 1.7 billion it is likely the best investment they ever made. [1] http://www.businessinsider.com/zynga-insiders-cashed-out-just-before-stock-crashed-2012-7 http://www.businessinsider.com/zynga-insiders-cashed-out-jus...