This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Zynga's Worth Eclipses Electronic Arts'

Stocks in this article: ERTS

NEW YORK ( TheStreet)-- Zynga, the privately-held social gaming company, has reached a higher valuation than video game publisher Electronic Arts (ERTS), according to SharesPost, an exchange for shares of privately held companies.

Zynga, the San Francisco-based creator of the popular FarmVille and Mafia Wars titles, is worth about $5.5 billion while Electronic Arts is valued at around $5.2 billion.

Zynga uses social networks like Facebook to distribute its games. The company has grown at lightspeed, increasing its headcount from 150 to 1,100 employees within the past 18 months.

More than 215 monthly active users play Zynga games, according to the company. In comparison, Crowdstar, Facebook's second-largest game developer behind Zynga, has around 55 million users.

Zynga generates revenue from the sale of virtual goods -- digital items that gamers buy with real cash such as a cow or corn FarmVille. While most virtual goods cost from $1 to $3, these figures can add up -- the virtual goods market is expected to reach $1.6 billion this year in the U.S. alone, according to Inside Network.

Electronic Arts, however, has faced challenges transitioning away from a traditional brick-and-mortar business towards digital distribution. While the video game publisher begun to break into digital this summer through its acquisitions of social gaming companies Playfish and Chillingo, EA's shares have declined almost 4% in the last three months.

Last quarter, Electronic Arts' revenue fell to $539 million excluding items, compared to $816 million in the year-ago period. The company has laid off more than 1,500 workers in the last few months.

SharesPost bases its valuations on research estimates, trades of recent shares and funding round valuations.

Shares of Electronic Arts were up 1.28% to $15.82 in mid afternoon trading.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs