Get Tech Articles via RSSZynga on a $3.3 Billion Valuation
I am a big fan of Zynga games particularly Farmville, Mafia Wars, Cafe World and Fishville. In the latest reports released and reported over at SeattlePI, Zynga Inc. is worth between $2.8 billion and $3.3 billion.
According to Global Silicon Valley Partner’s NeXt Up Research, Zynga is expected to grow 35 percent annually through 2014.
Zynga is blazing hot right now as they have dramatically increased their user base from 50 million players in June 2009 to 230 million in December 2009.
NeXt Up Research previously valued Facebook between $5 and $6.5 billion US dollars while Twitter at $674 million dollars. Zynga’s application is running on top of Facebook and their $3 billion valuation seems too high for a startup that sits on top of a social networking site but the massive number of users they have and their exponential growth weighs heavily on their valuation.
Zynga is generating around $250 million dollars in revenue despite only having 2 to 3 percent of their user base opening their wallets for virtual goods and items. But still, the potential number of users that can shell out money is real and it all depends on how creative and strong the virtual good offers of Zynga becomes.
It doesn’t look like Zynga is slowing down and anything they release turn up into a hit. PetVille for example was only released last December and two months after they already have 18 million monthly users making the application the 12th most popular app in Facebook.