Why Zynga’s Updated S-1 is Already Obsolete

Today, for the umpteenth time, various media outlets got into a huff over the fact that a very small percentage of Zynga’s users make up the biggest portion of its revenue. It wasn’t new news, but what was news is that Zynga restated its revenue to correct an error, adjusting it north three percent. However, what was really big news for Zynga this week wasn’t even announced by Zynga.

Earlier, Google+ also announced that it is launching a games platform, complete with offerings from… Zynga! That’s not all, Google+ carries Angry Birds, Bejeweled, and they’re looking to take on other games developers as well.

An important factor that separates Google from Facebook is that the latter keeps younger users—13 years of age and under—from establishing accounts. Through Google+, it is likely that game developers will have an even greater reach to an even bigger audience, one that is particularly savvy with mobile and social gaming. As tiny as anyone finds the percentage of Zynga’s users that actually pay for products, the size of that group can only grow.

And Zynga isn’t nearly done growing. As it begins to gain momentum on a separate revenue track via Google+, the company will have a $1 billion line of credit to deploy as it ramps up growth for its hotly anticipated IPO.

To be sure, Google+ is earning headlines, between its ambitious invasion of territory Mark Zuckerberg has owned throughout social and mobile gaming’s impressive trajectory and its light-speed-like growth. However, with the establishment of its gaming platform—as expected—Google is providing a lift of early-stage VC-backed companies and IPO candidates alike. The only loser in this equation, in fact, is Facebook.