Zynga Game Network Now Bigger Than Electronic Arts
Zynga Game Network, maker of online games such as "FarmVille", is now worth more than gaming giant Electronic Arts (ERTS), Bloomberg News reported.
Zynga is valued at about $5.51 billion, according to SharesPost Inc, an exchange for shares in privately held companies. Electronic Arts is worth $5.16 billion on the Nasdaq.
"The valuation is not that crazy, given what's going on in the market," said Atul Bagga, an analyst at ThinkEquity LLC in San Francisco, who estimates the virtual goods market may reach $3.6 billion in three years. "It's not that terribly expensive seeing the growth prospects."
Meanwhile, Electronic Arts has struggled to adapt to a new world where the Facebook page is more important to gamers than the gaming console. The company has cut jobs and sought acquisitions for growth, while shares have slipped 7.4% since March 1.
Zynga is the top maker of games on Facebook, with more than 210 million monthly active users.