Zynga to Lease Back Space and Remain Headquartered in San Francisco
(EDITOR’S NOTE: The sale of the 670,000 square foot building located at 650 Townsend Street was initially expected to close for as high as $700 million, with 14 bidders looking to make the purchase of the property, according to earlier reporting by The Registry. At $602,679,598, the sale comes to just around $900 per square foot.)
SAN FRANCISCO–Today, Zynga Inc. (Nasdaq: ZNGA), a global leader in interactive entertainment, announced the company has entered into sale and leaseback agreements with an affiliate of Beacon Capital Partners, LLC, an American private real estate investment firm based in Boston, Massachusetts, for its San Francisco headquarters building. Zynga will leaseback space within the building and remain headquartered in San Francisco.
Zynga expects to receive a net cash benefit of approximately $600 million in 2019. In 2012, under Mark Pincus’ leadership, Zynga purchased the building for $234 million.
“We are proud to operate Zynga’s headquarters from San Francisco, which is home to many of our talented studio and business teams,” said Frank Gibeau, Chief Executive Officer at Zynga. “Zynga’s building sale delivered a strong return, and we look forward to investing the proceeds into future growth.”
This announcement does not result in any changes to Zynga’s Q2 2019 financial guidance. The closing of the sale of the building is expected to take place before the end of July 2019.
About Zynga Inc.
Zynga is a global leader in interactive entertainment with a mission to connect the world through games. To date, more than one billion people have played Zynga’s franchises including CSR Racing™, Empires & Puzzles™, Merge Dragons!™, Words With Friends™ and Zynga Poker™. Zynga’s games are available in more than 150 countries and are playable across social platforms and mobile devices worldwide. Founded in 2007, the company is headquartered in San Francisco with locations in the U.S., Canada, U.K., Ireland, India, Turkey and Finland. For more information, visit www.zynga.com or follow Zynga on Twitter and Facebook.