Zynga Could Be Worth $5 Billion Now

ZyngaPeople often think what 237 Million monthly active users mean for the popular social gaming company Zynga. Well, according to some equity analysts, the traffic, monthly revenue and some other metrics mean Zynga is worth around $5 Billion right now. The report was recently released by analysts at SecondaryShares.com and   claims that each Zynga share would fetch $15 if it were to go IPO right now.

Currently, Zynga is a privately-held company and the shares are traded by accredited investors at places like the SecondaryMarket at $9 per share. Analysts think that with projected $500 Million revenue for the current year and cross-marketing opportunities Zynga has, the revenues might go as up as $1.6 Billion in next few years. These assumptions are based on an estimated $2.25 revenue per Monthly Active User. If Zynga continues at the projected growth rate, it may very well be worth up to $15 Billion by 2015.

The assumptions are also , quite heavily. based on the numbers that Chinese social gaming company Tencent brings in. It is also interesting to note that Zynga was the #2 merchant for PayPal in 2009 and owns 6 of the top 7 games on Facebook. However, with Facebook as well as Farmville about to reach the peak of their popularity soon, it would be quite difficult for Zynga to maintain the same growth rate in coming years. Still, Zynga is one of the best examples of how something as casual as social games can turn into a very serious business.

The complete report can be downloaded here.

Published by

Tehseen Baweja

Tehseen likes to write about Internet tools that make life easier. Check out his blog at Ijaar.com for more good stuff or follow him on Twitter @tehseenbaweja

  • Its amazing… they are pretty much everywhere on Facebook and sometimes people go on Facebook just for Zynga.

    Could Zynga become more prosperous than Facebook?

  • Roger Mathis

    As many roadblocks as Facebook throws to Zynga, any word on Zynga starting its own Facebook-type site? or maybe going over to Google Buzz and letting Facebook peeps transfer? Everyone I know would transfer today, they dislike Facebook so much for interfering with the games.