Social gaming company Zynga has hit a $5.51 billion valuation on SharesPost Inc. Given this valuation, it means that Zynga is essentially worth more than Electronic Arts. Electronic Arts is worth about $5.16 billion on the stock market.
Zynga was started by Mark Pincus about four years ago and they make money by selling virtual goods. Zynga has about a 30% market share for Facebook game applications.
EA has seen a decline in retail sales because people are starting to prefer playing games on social networks instead of buying shrink-wrapped games. Zynga has about 210 million monthly active users and they have raised $350 million in venture capital. Zynga has acquired six companies since this past May and they have about 1,200 employees.
Zynga’s valuation in March on SharesPost was $2.61 billion. This means that the valuation more than doubled in 7 months.