Social gaming company Zynga is about to complete a new funding round worth $500 million, and at a valuation of $10 billion, sources tell BoomTown. "The round includes big institutional investors Morgan Stanley, T. Rowe Price, Fidelity Investments, as well as a token investment from existing venture investor Kleiner Perkins, in order to establish the huge valuation," BoomTown reports. "The big funding is essentially a precursor to an initial public offering."
To date, Zynga has already raised over $500 million from a host of investors as its explosive growth in social gaming has proven irresistible. However, Zynga's long term success isn't written in stone. "Some worry about Zynga's reliance on Facebook, as well as its sharing some of its revenue." That said, sources say the company's sales of virtual goods and advertising is closing in on $1 billion and more annually.