Zynga's Worth Eclipses Electronic Arts'
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 http://twitter.com/ozoran. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV