That’s some farm: Zynga valued at $5.51 billion

Sections: Web, Web 2.0 / Social Networking, Web Apps

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Holy smokes! Zynga, the social gaming company behind Farmville, is currently valued at $5.51 billion by SharePost, a company that trades privately held stock. By contrast, Electronic Arts, a gaming company almost everyone knows is valued at just $5.16 on the Nasdaq. Facebook is on fire, but really, $5 billion for spammy-little-timewasters?

“The valuation is not that crazy, given what’s going on in the market,” said Atul Bagga, an analyst at ThinkEquity LLC in San Francisco, who estimates the virtual goods market may reach $3.6 billion in three years. “It’s not that terribly expensive seeing the growth prospects.”

I disagree. One of the things I left with after watching The Social Network was a sense that Facebook could be toppled by something being brewed on a campus, in a garage, in a basement in the US, India, Bulgaria – it didn’t matter. The foundation of the mighty Facebook kingdom is built on quick-sand. Just ask Myspace.

What’s your take, is social gaming the future of gaming profit? Or will we one day get a GDVP report? That’s Gross Domestic Virtual Product.

Read: [Business Week]

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