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WSJ reports this morning that Zynga is worth $7b. Is it?
ecastronova on Feb 14, 2011 in Economics, Games | Permalink
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On revenues of approx. $600 million? I'd have to say no. Even considering intangibles, anything above $1.5 billion is bubble economy thinking. But you know money - it only has the value people are willing to believe in. :)
Feb 14, 2011 at 11:23
I can see that.
Er, wait, they didn't mean Linden dollars? Then "haha no" is my answer.
Brian 'Psychochild' Green |
Feb 14, 2011 at 16:40
Some people are saying Facebook is the next tech bubble. Seems to me that Zynga is riding that hype. So count my financial amateurism as another one calling it overvaluation.
Michael Chui |
Feb 14, 2011 at 17:30
It's hardly a bubble. However, it may be worthwhile to consider whether the shift into F2P gaming is a function, in part, of the slow recovery. Zynga may be worth 7 billion given current consumer behavior, but in two to five years people may switch back to more expensive forms of consumption. This would fall in line with your "virtual recession" hypothesis. It's possible the people that value the company are hoping that they can profit from an IPO that occurs before the eventual economic expansion.
Isaac Knowles |
Feb 15, 2011 at 19:13
That depends on who is buying.
Feb 19, 2011 at 16:47
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