Zynga's second-largest gaming company valuations second only to dynamic blizzard

According to foreign media reports, social game developer Zynga is carrying out a new round of $500 million trillion in financing, valued at $10 billion trillion. In this most digital form, Zynga has valued more than $6.47 billion trillion of veteran gaming company EA, the world's second-largest gaming company after its 13.3 billion dollar-worth of blizzard.

Whether or not there is a valuation bubble, we have to admit that the game industry is changing. According to Zynga's current rate of growth, the company will soon overtake the blizzard, which is only a matter of time. Zynga was only about 4 years old, and EA and ATV Blizzard were the few veterans of the video gaming industry.

On the surface, this is absurd. In the fiscal year ending March 2011, EA Revenue was estimated at 3.7 billion U.S. dollars, according to the U.S. Non-GAAP Accounting Standards (NON-GAAP). The 2010 fiscal year, the dynamic view of blizzard revenue reached 4.8 billion U.S. dollars. Both EA and ATV have more than 7000 employees and are profitable. The analysis predicts that Zynga's 2010 revenue is about $850 million trillion, with profits of $400 million. The company has more than 1500 employees and frequently buys game studios.

Zynga valued about $5.27 billion last October, when valuations had gone beyond EA. Zynga doubled its valuations after 3 months. Zynga grew up on Facebook and is one of the most popular social networking sites, with a global audience of more than 500 million and valued at $50 billion trillion. The same popular social media also has more than 6 billion dollars worth of Groupon and a 8 billion to 10 billion dollar Twitter estimate.

Zynga's profit model attracts a large number of investors who make money by selling gaming virtual goods. Tencent, an Asian company, has also adopted this model, and has achieved great success with a market capitalisation of about $46 billion trillion. Most Chinese online gaming companies are worth less than 4 billion dollars.

Another reason for the rise in Zynga valuations over the past few months is that the company's new game CityVille has become the fastest-growing game ever. At the same time, Zynga is actively planning the global market, moving into the mobile gaming market and acquiring popular gaming studios such as Newtoy.

Many think Zynga's valuations are untrue, and the rise of the company is particularly stressful for traditional gaming companies. But the company buys real assets with so-called unreal valuations, buys a game studio almost every month, and even has enough cash to buy a traditional game maker and invest in new games.

Many big brands are planning to snipe at Zynga's core market this year, but it's more difficult because Zynga has invested a lot of money in marketing in this area. Meanwhile, the analysis predicts that this year's tablet games and smartphone games will grow rapidly. In this market, EA occupies the perfect position, but the view of the blizzard is not very good. Zynga will also compete with companies such as Japan's Dena, which has spent 403 million of billions of dollars on acquisitions of Ngmoco. Mobile gaming will be the next big battleground, and no company has yet been dominant.