Zynga could be valued at more than US$7bn

14 Feb 2011

Online social gaming company Zynga is looking to raise US$250m in new funding, which could value it at between US$7bn and US$9bn.

The company behind FarmVille and Mafia Wars filed papers in April, authorising the issuance of stock valuing it at US$4bn.

According to the Wall Street Journal, Zynga is in conversations with one major bank, mutual funds and others.

Extraordinarily high valuations for fast-growing web companies have been seen lately, with Facebook being valued at US$50bn and Twitter valued from US$8bn to US$10bn.

Zynga is especially desirable, however, as it’s not only popular, with 275m monthly users, but is also highly lucrative. Users can spend real money on virtual goods.

Zynga generated US$400m in profit last year as a result, with US$850m in revenue, said the report.