A recent report suggests that the publisher of popular games like Farmville, Facebook Texas Holdem Poker, and Mafia Wars could be worth as much as $3 billion dollars, a little more than half of what gaming giant Electronic Arts is currently worth. With an active monthly base of nearly 230 million players, Zynga makes most of their profit by charging for in game items such as facebook poker chips, farmville items, and mafia wars money.
Analyst Michael Pachter with Wedbush Morgan Securities says that even though “nobody but Zynga knows enough about the company’s revenue, margins and growth trajectory to have an informed opinion about what the company is worth” he considers it “reasonable to believe a high value for the company.”
As rumors and rumblings as to whether or not Zynga will be taking their now private company public continue to swirl, one can expect different valuations and justifications to be floated as potential future investors try to gauge the company’s actual worth.
