Zynga, mobile and social game developer of popular titles such as Farmville, has sold their San Francisco headquarters to an affiliate of Beacon Capital Partners, a US private real estate firm, as reported by VentureBeat.
The lease details the sale to be worth $600m, lasting 12 years, ultimately reducing Zynga's available space in the building to 185,000 square feet. The remaining space is to be revamped for the employees working there, but as for the rest of the building, only one other tenant is listed currently, that being AirBnB.
Speaking about the sale, CEO of Zynga, Frank Gibeau told VentureBeat "it's a nice gain for our shareholders and we'll put it into cash, minus the transfer costs. The goal is to grow as we've done with Gram, Small Giant and Peak. We'll invest in running the business, acquisitions, and our current buyback program. We will make sure we do the right thing."
As much as the sale will help Zynga grow even more, it could be questioned on why they sold the expansive building in the first place, especially considering its worth. Gibeau spoke about this saying, "if you look at the San Francisco market, it's a high position. We are an interactive game company. We are not a real estate company."
Whatever the case, expect to see Zynga become even more potent in the games industry, especially with this large sum of cash to support them.