Zynga has made copious amounts of money from its games like FarmVille and Mafia Wars. While the company's worth isn't a matter of public knowledge, pre-IPO trading service SharesPost estimates Zynga to be valued at somewhere around $3 billion. To put that in comparison, Facebook itself is estimated to have a valuation of about $5 billion.
“We have used two methods,” said Next Up researchers, who contributed to the report [thanks Venture Beat]. “Steady-state target EV/Revenue multiple, and comparative EV/Revenue multiple based on a peer group. We arrived at a market cap of $2.806 billion to $3.315 billion for Zynga, and an estimated price per share of $14.97 to $17.68.”
Basically, the Next Up researchers put Zynga's share values where they were based upon estimates comparing companies with similar income levels.
2 Comments
February 19, 2010
There's a bit difference between VALUED at $3b and WORTH $3b.
February 24, 2010
Yeah, sure. They are worth nearly as much as ERTS. Worth 4X TTWO who has games that people actually pay for. Worth 8X THQI.
The dot.com bubble is back. Well, at least I know understand EA's buy of Playfish . . . they want some of that ridiculous over-valuation to rub-off on them. Sorry, it doesn't work that way, Pie-man.