Zynga In 'Serious Discussions' For Tax Breaks With San Francisco HQ

Social game developer Zynga says it is in "serious discussions" with San Francisco city officials to receive tax breaks and keep its local headquarters, and that it is "encouraged" by those talks so far. The FarmVille maker allegedly threatened to relocate its San Francisco headquarters to Silicon Valley unless the city granted it a tax break on employee stock options, according to a report earlier this week from The Bay Citizen. Popular microblogging service Twitter, also based in San Francisco, is currently seeking an extension of its exemption from payroll taxes, too, prompting Zynga and many other tech firms in the city to pursue similar incentives with officials. "We are looking at a variety of options to grow the company in the Bay Area, and as part of that, we are in serious discussions with the city," said a Zynga spokesman said in a statement posted by MarketWatch. "It would be premature to comment on those conversations at this time," the statement continued. "We are encouraged that the city is engaging with us on this issue." The offices of San Francisco mayor Edwin Lee and Board of Supervisors president David Chiu have not commented on the matter. Zynga recently signed a seven-year lease agreement for a new and bigger headquarters office in San Francisco's Townsend Center building, where it will relocate to this spring. The company currently has over 1,500 employees and at least 15 studios around the world.