FarmVille-maker Zynga valued at $7 to 9 billion dollars

FarmVille-maker Zynga valued at $7 to 9 billion dollars

Summary: The Wall Street Journal reports that FarmVille-creator Zynga was valued at $7 to 9 BILLION dollars. Yes, you read that right $9 billion dollars (*insert Dr.

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farmville maker zynga worth billionsThe Wall Street Journal reports that FarmVille-creator Zynga was valued at $7 to 9 BILLION dollars. Yes, you read that right $9 billion dollars (*insert Dr. Evil laugh here*).

The company that simply wanted to turn socializing into a game now has a valuation that's higher than video game titans Electronic Arts, which is a pretty fantastic feat when you stop to think about it. Who knew that a casual game about farming (and a handful of others) would be able to interest potential investors more than the company responsible for video game hits like The Sims, Madden NFL Football and, well, a list that can go on forever.

For further comparison, the market values Facebook at $52 billion, Groupon at $15 billion and Twitter at roughly $10 billion. Let's just say that web-based social interaction of any sort is looking pretty darn sexy at this point.

Back to the Zynga and Electronic arts comparison -- it's important to point out that Zynga doesn't actually make more money than Electronic Arts at this point. VentureBeat notes that Zynga pulled in about $850 million last year, while EA brought in $3 billion in the same time frame. But, when you consider that Zynga's top game CityVille has gained 96 million users in a matter of months, while EA's top game The Sims has sold 125 million copies in 10 years and Blizzard's online game World of Warcraft hit 12 million subscribers in 6 years, it's understandable why traditional video game makers are scratching their heads, while potential investors are looking at Zynga with dollars signs in their eyes.

Of course, the big question is -- will Zynga games be able sustain their popularity like The Sims and World of Warcraft? Hard to tell at this point. FarmVille lost a huge chunk of players after its first year, but now seems to be holding steady at around 50 million monthly players. It will be very telling to see if Zynga's new game CityVille will be able to hold onto its big international fan base once it hits the one-year or two-year mark -- or if people will get bored with virtual farming/city planning and move onto the next big thing.

Topic: Social Enterprise

Libe Goad

About Libe Goad

Texas native Libe Goad resides in New York City and has spent the past decade covering technology and video games for publications including Blender, PC Magazine, Bust, Seventeen and Sync.

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14 comments
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  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Bubble alert on social networking. Wall street looking to make quick and fast dollars. Does not seem sustainable.
    hoaxoner
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Is that shirt really comparing Atari with Zynga? Hell no! Zynga will never amount to the greatness that was Atari. It's like comparing dog **** with Q-Bert or Barnstormer. <br><br>Zynga is the Herpes of the Facebook era - Something you just want gone, but won't go away.
    The one and only, Cylon Centurion
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    I have to ask how they are making this money? I understand you could buy virtual points or whatever in the game with real money but who would actually do that? You are seeing a huge number of cityville players because the game is basically free. Not sure about Sims online but WOW is subscription based which is why cheapos like me never played it.
    Loverock Davidson
    • Agreed.....

      @Loverock Davidson

      I certainly do not know anyone who has purchased a thing while playing these games on Facebook. I don't care for subscription games because I don't have the time to play them anymore.
      linux for me
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    valued at.....means if somebody wanted to buy Zynga, that's the estimate of what it would cost. The article clearly states they only brought in $850M last year. As far as users, it's easy to get millions of new users when the cost of entry play is $0. The games used for comparison require an initial outlay of cash.
    fsjjunkie
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Pretty much another bubble...especially when the revenue source is solely advertising (FB, Zynga). I know its about scale, but its also based on the most fickle source of advertising (consumers, at least with corporates it can take yrs for revenues to decline, but with those pesky sheeple, one yr it will be this and then it will be that).

    You can't blame investors for ramping these firms up, as they'd want the big returns. But would you buy into these firms (post ipo) for your pension?

    How about a Zynga / EA merger in the future for all the benefits of a AOL/TimeWarner. ;-)

    David
    www.joots.co.uk
    davidjoots
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    I think $7 is about right.
    boomchuck1
  • well quick sell it sell it

    take the money and run ..... soon it will be worth nothing .....
    step one find a country without extradition deal with the USA with a nice beach and good beer ( worst case import it )
    step two sell for 3.5 billion
    step 3 run like hell and vanish
    Quebec-french
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Doesn't anybody remember the dot-bomb in 2000? Companies' values being artificially inflated by the investment world only to come crashing down when everybody gave their heads a shake?
    Rexxrally
    • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

      @Rexxrally
      Well the Banksters of Wall Street have to do something, now they can't knowingly rob people with Sub-Prime Mortgages.
      neilpost
    • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

      @Rexxrally

      The dot-bomb? I am still waiting for the Dutch Tulip Market and South Sea Company stock to recover.

      Do we learn nothing?
      bigroj
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Buh-bull.
    jeverettk
  • Proving but again

    You can fool most of the people most of the time. Doubly so our financial wizard class.
    klumper
  • RE: FarmVille-maker Zynga valued at $7 to 9 billion dollars

    Who is the 'shirt?' Where did Atari get mentioned? Did a blond moment sneak in? I think Time-Warner tanked a pretty good company due to great expectations concerning their infallibility. Volunteering for 1st round layoffs added many thousands to my final check. The bubble will burst, many will be financially hurt. There is a common theme; greed fosters self delusion, media hypes it and unthinking people buy. Meanwhile, back at the ranch, the cows say, "Moo."
    LostValley