Zynga IPO

  OTT_B 02 Jul 11
Locked

With the apparently imminent flotation of Zynga, the 'social gaming' company (can anyone explain to me what social gaming actually means, and what makes it social??), the expert analysts out there expect the value of the company to be around the $15bn - $20bn mark. Yes, BILLION, not million. Oh yes, and they made a profit of.......90.5 million dollars last year, making their estimated value an astonishing 221x their profit.

With estimates of Facebook's value anywhere north of $100bn with rumoured profits last year of £400m, that gives a multiple of 250x.

Is it just me, or is the question of whether another price bubble is forming, a rhetorical question now?

Irrespective of my thoughts of Facebook and Zynga (which are becoming more negative and unrepeatable as time goes by!), I couldn't value Zynga at any more than $1bn and Facebook at $4bn. I could also argue that Zynga should be worth substantially less since they are, to all intents and purposes, dependant on Facebook to survive.

  OTT_B 02 Jul 11
  WhiteTruckMan 02 Jul 11

It's only worth what someone is prepared to pay for it. Valuations of a company without much in the way of tangible assets (relatively speaking) is largely a marriage of convenience between guesswork and optimism anyhow.

WTM

  wiz-king 04 Jul 11

Never heard of them - had to look them up to see what they made....money?

Advertisement

This thread is now locked and can not be replied to.

Should I upgrade to Windows 10? 8 reasons why you should upgrade to Windows 10... and 2 why you…

We are being sold the ability to spend money we don't have. And we love it

Encore creates eerie effects for Spielberg's new TV show The Whispers

How to use Apple Music in the UK: Complete guide to Apple Music's features

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message