Zynga isn't too popular around these parts -most people recognise them as the blue-eyed devils behind Farmville, and the reason why their Facebook feed is plagued with garbage - but investors seem pretty keen. In an attempt to rustle up some capital, they've released new stock, and investor interest values Zynga at around US$7-9 billion.
Last year Zynga garnered roughly $850 million in revenue, and it seems like their ability to expand into other markets, such as iOS, has skyrocketed their value amongst potential buyers, who are apparently knocking on Zynga's door to invest.
According to Larry Alburek, the managing director of investment firm EB Exchange Funds, Zynga is second only to Facebook when it comes to interest from buyers.
"Guys call me up and tell me just go out and get it," he said. "The number of requests and activity is crazy compared to last year."
Eric Schmidt, however, the CEO of Google, believes the high valuation of companies such as Facebook, Twitter and Zynga is a bubble destined to pop.
"There are clear signs of a bubble," claimed Schmidt, "but valuations are what they are. People believe that these companies will achieve huge sales in the future."
It's an interesting one - by releasing a limited amount of stock, while demand is high, Zynga are clearly at a risk of overvaluing themselves. But time will tell - the company is clearly making a lot of money via their business model, and investors clearly want a piece of that social gaming pie.
Zynga's Talks With Investors Value Gaming Concern at Over $7 Billion [Wall Street Journal]