Zynga Valued Higher Than Electronic Arts. Yes, You Just Read That.

Posted by on February 15, 2011 at 5:00 pm

Per the Wall Street Journal, social games maker Zynga (Cityville, Farmville, Frontierville) has just scored an evaluation of $7-10 billion based on new investments, which trumps the current $6 billion market cap of publicly-traded gaming titan Electronic Arts. Yeah.

Now, just like when Apple’s market cap surpassed Microsoft’s last year, despite being a smaller company, this is a play on the investors’ part to indicate where the future of this industry is moving toward. These funds and other, private individuals are obviously more interested in web-based, micro-transactions (where you buy virtual cash to herd more sheep or whatever) rather than the old school model of going to a store to buy another copy of Madden each year. During Electronic Arts’ restructuring last year, they acquired Zynga’s rival Playdom on that same assumption, but we have yet to see much of the fruit of that deal. It also doesn’t help that unlike larger publisher Activision, EA doesn’t have a sizable profit coming from online games (namely: World of Warcraft).

Oh, these times, they are a changin’…


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