People 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.