Zynga is the IP thieves and social games company behind Farmville, the game that ruined Facebook more than its own users’ duckfaces. At one point, they were worth an astronomical amount of money – but things have changed. What’s it worth now?
According to one analyst, pretty much nothing.J.P. Morgan analyst Doug Anmuth says that since the company’s current listed stock is now valued at less than the company’s actual assets, Zynga is essentially worthless.
The company’s combined assets, divided, work out to $2.46 per share – while their current listed price comes in at $2.35, which means, according to Wall Street at least, that Zynga is worth negative money. When it first listed, it shares were worth $10 a pop.
"The outlook for [the fourth quarter] is significantly lower than our expectations, which assumed some growth from newer titles launched this summer," wrote Anmuth. "We expect fundamentals to remain weak over the next few quarters as the company faces several headwinds."
It’s only going to get worse for the company; it’s announced it’s taking an up to $95 million knock from its misguided acquisition of OMGPOP, the makers of internet-sensation-for-all-of-five-minutes Pictionary clone Draw Something.
On top of that, the company’s busy battling EA in court over its social city-builder The Ville, which EA claims is little more than a copy of its own Sims Social.
Has the social, casual gaming bubble burst?
Last Updated: October 11, 2012
