Google invests $200m in game maker
GOOGLE has invested up to $200m (£133m) in social gaming group Zynga as it prepares to crash into the games arena later this year, according to sources close to the firm.
Google Games will specialise in “social” games similar to those developed by Zynga, which users can play online without downloading software.
Zynga shot to fame after releasing hit games including FarmVille and Mafia Wars over Facebook.
It is now estimated to have revenue of up to $350m, which analysts believe could rise to $1bn in 2011.
Google is developing its own social network in the style of Facebook, thought to be called Google Me, after its gmail-based network Buzz failed to attract a big audience.
Google is desperate to compete with Facebook in the social networking stakes but is unlikely to make much of a dent in its 500m user base – especially after its founder Mark Zuckerberg boasted nothing can stop the site from hitting the 1bn mark.
Google said: “We do not comment on rumour and speculation.”