Millions Of Virtual Farms Worth Tens Of Billions Of Real Dollars

The company behind FarmVille, Mafia Wars, CityVille (and perhaps the death of PC gaming) may be going public this week, valued as high as $US20 billion, Reuters reports.

A source familiar with the initial public offering tells Reuters that Zynga plans to raise $US1.5 billion to $US2 billion and could file paperwork as early as Wednesday. The IPO, the source said, could value the company as high as $US15 billion to $US20 billion.

On analyst put Zunga's annual revenue at about $US1 billion. PopCap Games told Reuters earlier this year it plans to file it's own IPO by the end of the summer.

The risk to investors is that Zynga's games, all Facebook games, could see a sudden shift in interest by a fickle group of users who aren't as invested in the franchise or gaming as a whole, as traditional gamers might be.

Zynga IPO could raise $US2 billion, file Wednesday: source[Reuters]


Comments

    Typo: 'Zunga'

    Exactly! What happens to Zynga and it's shareholders when the Farmville masses decide they simply couldn't be bothered anymore?

    The vast majority of Zynga/Facebook gamers are not gamers in the traditioinal sense (ie. gamers that make monetary investments in their hobby) and can drop gaming if they like, safe in the knowledge that they've only wasted their time (unless you're part of the moronic contingency that actually spends real money on Zynga in-game items....idiots)

    Considering the recent drop in the Facebook user-base and going under the possibility that this may only get worse with time, having Zynga floating on the stock-market could be very risky...

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