Zynga now valued at $5.51 billion, more than Electronic Arts

By on October 26, 2010, 10:53 AM
SharesPost has valued Farmville developer Zynga Game Network at $5.51 billion, according to Business Week. That means it is now estimated to be bigger than console publisher Electronic Arts, which stands at a market cap of $5.16 billion. It still has a long way to go to beat Activision Blizzard, which has a market cap of $13.9 billion.

While making such direct comparisons isn't completely accurate, nor fair, it gives us a snapshot at how quickly social network gaming is growing. Zynga was founded four years ago and already six of the 10 most popular apps on Facebook belong to it, and it has more than 210 million monthly active users.

The valuation for Zynga is so high because it is based on the growth of the virtual goods space, which by itself is at a whopping $1.6 billion this year. The social firm isn't the only one in the virtual goods game though: EA also has a toehold in that market, having acquired Playfish late last year.





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Burty117 Burty117, TechSpot Chancellor, said:

I hate farmville with a a real hate. My House mates (2 ladys and a gay guy) all go on it religously for no reason! hell the gay guy has basically got as far as a human possibly can yet he goes back just to look at his garden!

Kind of upset to hear that EA is doing so badly, I mean they publish games like crysis and BF:BC2 and they are being beaten (in value anyway) by this rubbish!

cyrusjumpjet cyrusjumpjet said:

This is insane. People go absolutely bananas over Farmville.

TomSEA TomSEA, TechSpot Chancellor, said:

That dang Farmville - has most everyone in the world addicted to it. :p

RebelFlag said:

Definitely has to be a case of quantity over quality. Between Farmville and Mafia Wars, facebook has become nothing but an annoyance.

posermobile89 said:

That is quite impressive, though I don't condone them. I think most of their games on facebook are mindless drivel and anyone who plays them a lot shouldnt have a computer

Cueto_99 said:

I never though such a game could make a company grow so much, to the point it has beaten EA at least in value... Well it's like the wii philosophy, looking for a bigger market that doesn't necessarily covers true hardcore gamers...

Johnny Utah said:

There must be a lot of unemployed people right now. Face Book and this game make me want to set my face on fire. As poser said so aptly, it is "mindless drivel and anyone who plays them a lot shouldn't have a computer." My 2 year old can play Farmville....it's a game for people with low intelligence quotients who have no lives and TONS of time. Humanity is doomed. Now people play it on their phones?? I saw this trend at work...people on Face Book when they SHOULD have been working.

NeoFlux said:

I have a 32 year old friend who plays Farmville and once i asked him "Why do you play this" ... his answer - "I do not know ....really.... "

And they say WoW is addiction ...

Relic Relic, TechSpot Chancellor, said:

This is just another sign of the changing times and the continued growth of the casual market. There will always be a place for hardcore games that we 'real' gamers expect from the industry and I hardly think we should worry considering many good games are still being published by EA. Popularity rarely equates to the best quality, and in this case they are at the bottom of the barrel. However that doesn't change the fact that tons of money can be made from it...unfortunately.

mccartercar said:

facebook and farmville can kiss my HWA!

Seriously though, I see why this is possible.

These games are free first and foremost. They also are interconnected to an already established base of users. It is no surprise that Zynga has made a killing off of these lame implementations of interactive simulators. The days of pay to play are on their way out the door as developers opt for different cash revenues that pay just as well or better than micro transactions or full retail, digital or brick and mortar, and avoid piracy altogether.

There is no stopping the doomtrain that is Social Gaming.

63Jax said:

who is Zynga never hear of it...

Burty117 Burty117, TechSpot Chancellor, said:

Relic said:

This is just another sign of the changing times and the continued growth of the casual market. There will always be a place for hardcore games that we 'real' gamers expect from the industry and I hardly think we should worry considering many good games are still being published by EA. Popularity rarely equates to the best quality, and in this case they are at the bottom of the barrel. However that doesn't change the fact that tons of money can be made from it...unfortunately.

Good point actually, its a bit like the premium Sound Market,

Not many people have heard of company's like Bowsers & Wilkins or Bang & Olsen or even Bose.

But plenty have heard of Sony, Logitech or Panasonic.

Same with this, not all my friends know what crysis is and even less with BF:BC2 yet I (and I assume all that read this comment) know that they both are better than farmville.

Quality will always prevale quantity in my books.

Chazz said:

In a world where Apple is sucessful, how could any of you think the average PC user has any bit of intelligence left?

Rod2709 said:

I don't understand how can people play FarmVille, that's one of the most boring and stupid game ever made... but then again, that's just my opinion.

cardriverx said:

Your all just jelous you didnt come up with the game. I know I am.

TorturedChaos, TechSpot Chancellor, said:

cardriverx said:

Your all just jelous you didnt come up with the game. I know I am.

Gotta agree - wish I had come up with something like that .

I feel its rather sad tho that such a simple game has pulled in so much money.

Skyphox said:

chazz said:

In a world where Apple is sucessful, how could any of you think the average PC user has any bit of intelligence left?

lol.. classic.

speeedy6 said:

Wow, people really like wasting money on non existent things. I gotta hand it to Zynga for exploiting the stupidity in people though.

Just imagine the games we could have if profit was not the goal. If every company competed to make the best and most unique products we would be years ahead of where we are today not just in the gaming industry but society as a whole. Some of you will disagree claiming that profits drive improvement, and it does to some extent, just not as well as it could be.

kevin1212 said:

chazz said:

In a world where Apple is sucessful, how could any of you think the average PC user has any bit of intelligence left?

Well Said, in fact facebook can fall in that category as well. It has its uses, but those that put in hours per day I certainly wouldn't class as intelligent.

Relic Relic, TechSpot Chancellor, said:

Your all just jelous you didnt come up with the game. I know I am.

They didn't - just like most major companies today they steal ideas from others to use or improve on them and then market them as unique.

rwright said:

My wife is a big player of most Zynga games. With her ADHD it a perfect time eater for her.

With the increasing availability of the game cards at most gas stations now, its easy to see how zynga is bringing in the cash.

n00bzZy said:

Couldn't care less about Zynga or Farmville, but this growth in casual games/"gamers" is worrying. At this rate even the bigger companies may eventually decide they're going after the casual market. This is a worst case scenario of course, but with more and more people playing those games it just may happen.

Darkshadoe Darkshadoe said:

How are Zynga customers any different than XBox Live or PC Gamers? Some of you call them unintelligent yet just as many people sit on XBox live or Steam for 16 hrs a day doing the exact same thing.

How many times have you heard someone playing Farmville say "that noob didn't water my f*cking crops!!! WAAAA WAAAA" or "My landscaping totally PWNZ U B*TCH!!" Yes..you guys that whine and cry during Team Fortress are EXTREMELY intelligent. /sarcasm

edison5do said:

This ins really impressive, 4 years on the bussines and already has a 5.16 Billions. value.

shortie said:

Farmville is such a boring game .. i wonder how people get addicted with it :o

tonylukac said:

My 5 year old nephew likes to play Farmville.

oasis789 said:

this is ridiculous. zynga worth more than popcap? absolutely wrong. some venture capitalist is going to get really poor.

VitaminC said:

Right Place right time. I doubt farmville would have been as succesful if it was boxed and sold at a brick and mortar. It was practically bundled with facebook; this era's AOL.

Now all they have to do is sit back and sell all of the demographic and behavior data that was handed to them by people who just can't find anything productive to do with their lives.

rebelinhyd said:

first farmville,mafia wars and now frontierville..zynga surely has proved that casual gaming is serious business but EA shouldnt be worried as long as they keep coming up with games like crysis,fifa and hot pursuit which makes the 'real' gamers real happy!!

Alster37 Alster37 said:

do I really want to play a cartoony 2d game where I have to wait a few hours before I can actually continue with the complicated task of growing crops? no. Do I want to play games where everything explodes, has a great storyline and is in eye popping 3d detail? yes. I might go buy an EA game now.

Puiu Puiu said:

I can't understand how a game like that can make you bigger than EA. And in such short amount of time too.

frodough said:

this is the age of a new dawn, where people prefer to play games for convenience (just like everything else in life nowadays). i bet if WoW and MW2 has built-in browsers for FB it will be probably just as successful except that they dont. my point is many people feel they can do more in a single web browser, like FB on chrome, than they can just burning hours and hours in the same game in a console. this is why companies like Zynga is so successful.

kaonis92 said:

People have changed that's all I can say. Stop wasting your time in farmville!

princeton princeton said:

burty117 said:

I hate farmville with a a real hate. My House mates (2 ladys and a gay guy) all go on it religously for no reason! hell the gay guy has basically got as far as a human possibly can yet he goes back just to look at his garden!

Kind of upset to hear that EA is doing so badly, I mean they publish games like crysis and BF:BC2 and they are being beaten (in value anyway) by this rubbish!

It's like a ******* joke eh? Games like Crysis that were built to not only push the envelope but take it and shred it into microscopic pieces get beaten down by a half assed game like farmville.

sMILEY4ever said:

I have to say I hate farmville and the people that play it. It's..useless?

Technochicken Technochicken, TechSpot Paladin, said:

I find it kind of scary that a maker of such crappy games could be worth so much. They don't even try to make entertaining games- they just try to make them addictive.

Guest said:

Ok, let's hold on a minute.

Market cap is NOT a reflection of a company's value. It's a reflection of the speculated growth of the company, in this case.

EA has been putting out consistent good games for years. This won't change. So nobody expects EA"s stock price to jump because all EA does is put out solid games.

With Zynga, it's a little different, since they only have one good product and people are eagerly awaiting the next one. This doesn't mean that Zynga's a bigger company, more successful company, is worth more, or makes better games than EA.

IAMTHESTIG said:

You've got to be kidding me... Really? The whole thing is a waste of bandwidth and peoples little remaining mental capacity.

Eddo22 said:

I agree it is boring. I've been playing it for a year now and the only reason I keep going is because my mom likes it. Seems to be big with the people who don't play 3d games.

ceejay949 said:

I wonder why so many people like playing repetitive games like farmville. Maybe just to kill some time.

oasis789 said:

well ive never played farmville or frontierville or mafia wars or any of those. and im proud of myself.

ruzveh said:

EA doing more hard work and zynga getting paid more :O

ruzveh said:

It clearly means that today everything is getting online based. One needs to go with the trend inorder to remain competitive

fadownjoo said:

This is so stupid, zynga..wtf is zynga...e a makes great games but they gotta step it up somehow, this is ridiculous

Rage_3K_Moiz Rage_3K_Moiz, Sith Lord, said:

This just shows how gaming is not standard geek-fare anymore.

It also shows how casual gaming is increasingly destroying brain cells all over the world.

Recipe7 Recipe7 said:

If I recall correctly, the owner is a Chinese entrepreneur. He seemed to have his eggs in all the right baskets.

fritz123 said:

no wonder. zynga games are FREE and are easily accessible through facebook. these sometimes gets so annoying with all the requests and wall posts. but the games are boring and mind numbing. sucks for EA though, they were not able to exploit the users as good as zynga, having bought playfish and all

XnaX said:

burty117 said:

Kind of upset to hear that EA is doing so badly, I mean they publish games like crysis and BF:BC2 and they are being beaten (in value anyway) by this rubbish!

You're not the only one.. I can't believe that a game so simple and absolutely meaningless (cmon, it's not even fun) can beat a giant, such as EA.. I am truly amazed.. In a negative way, that is..

Brodieeee said:

"Why was you late for work today?" .. Sorry, i was planting potatos.

Kibaruk Kibaruk, TechSpot Paladin, said:

I can feel this... I actually play Restaurant City on Facebook and I still wonder why... stlil check it once daily to get all the ingredients I can daily get, been logging in for over 180 days in a row even though I dont do much more clicks than 3-4 minutes daily.

Now I really want to quit it! hahaha

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