Social gaming is incredibly popular across Australia and New Zealand. Everyday, residents take part in Facebook games like Farmville and Zynga Poker. While the games’ developers make a great deal of revenue from advertising, no one ever expected them to be worth billions. However, Zynga, the brains behind dozens of Facebook games, could be worth $9 billion.
The company has planned to go public by 2012, and hopes to sell shares at about $8.50 to $10 each. As such, the company’s estimated worth is at about $9 billion, more than anyone would have ever expected from a Facebook game developer.
Social gaming is at the height of its popularity at the moment, which is why the stocks are going for such a high price. However, some emarketing analysts believe that the fad could fizzle out over the course of the next few years.
As is the case with most internet trends, it is likely that social gaming and all of Zynga’s titles could lose their popularity, cause a drop in pricing. However, it is too soon to tell.
In the meantime, investors are debating whether or not investing in social gaming is a good idea. When Zynga does go public, it will be interesting to see how investors respond.