Zynga building is for sale
Zynga had a good run. A lot of people made a lot of money on shitty Facebook games. Now the company is looking to offload its 670,000 square foot headquarters in downtown San Francisco. Funny thing about that math, though.
When Zynga bought the building in 2012 for $228 million ($340 per square foot) it got a relative deal. San Francisco office space currently sells for over $800 per square foot, or two and a half times what Zynga bought it for (~$570 million). Also an average studio apartment rents for $2,400 a month and rent prices are expected to rise 10.5% before the end of 2016, if you’re curious about one reason why my life is a living nightmare.
The company itself, despite about $1.5 billion in cash on hand, was considered worth less than $750 million three years ago and these days it’s closer to $500 million — which is less than the building it occupies is worth. Shares were worth $10 a pop in 2011 during Zynga’s initial public offering; they are currently sitting at $2.55 each. Turns out Don Mattrick couldn’t save Zynga after all.