Online gaming company Zynga has grown to generate over $90 million in profits, and warns in its 'Risk Factors' section for a stock market prospectus that there will be wealth disparities amongst employees.


The disclosure came in the ‘Risk Factors' section of the prospectus for a potential $20bn (£12bn) stock market listing that it filed with regulators at the end of last week. Many of the risks outlined are common to any company listing. However, it added that “we expect that this offering will create disparities in wealth among our employees, which may harm our culture and relations among employees”. Zynga, which is behind the most popular games played on Facebook, generated most of its $90.6m in profits last year from a mix of advertising and players stumping up real money to buy virtual goods that are used in its games. The warning in Zynga’s prospectus hints at tensions likely to surface across Silicon Valley over a summer that will see more paper millionaires created than at any time since 2000. Almost two thirds of the 1,858 people Zynga employed at the end of March have been with the gaming company less than a year, and it has gone to considerable lengths to generate an attractive environment for its highly-prized game designers and engineers. According to its website, Zynga’s holiday policy is “please rest and take some days off.” Facebook is expected to follow Zynga to the stock market in the next 12 months. Zynga, which relied on Facebook users for most of its first-quarter revenues, also warned that a deterioration in relations between the two companies would damage its business. The Telegraph

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