Zynga (NASDAQ:ZNGA) is the world’s largest social gaming company, with more than 220 million active users, and is on track for more than a billion dollars in revenue in 2011. It competes primarily with other social gaming companies like Electronic Arts (NASDAQ:ERTS) and Playdom which was recently acquired by Disney (NYSE:DIS). However, while it has been trying to for a while now, Zynga hasn’t made any significant inroads in the mobile gaming space yet.
Check out our complete analysis of Zynga.
We currently have a $10 Trefis price estimate for Zynga, which slightly above its current market price.
Mobile Gaming to Contribute to Zynga’s Next Phase of Growth
Zynga recently launched a series of mobile games, and now has close to 13 million daily active users on mobile platforms like iOS and Android, and a total of 54 million daily active users across all platforms. Mobile gaming is expected to contribute to the next phase of growth for Zynga’s user base, which has been stagnating in the last two quarters.
Words with Friends is the company’s most popular mobile game. It also launched Dream Zoo recently, which has helped it gain some mobile users. It also offers mobile versions of its popular games like CityVille, FarmVille and Poker on mobile platforms like iOS and Android.
Zynga is expected to use its IPO proceeds of nearly $1 billion to acquire more mobile gaming studios in order to expand its mobile gaming market share as quickly as possible. [1] It tried to acquire Rovio, the maker of Angry Birds, for $2.2 billion earlier this year but was turned down. We expect the mobile gaming market to be worth more than $22 billion by 2015. [2] Mobile games could eventually become Zynga’s largest source of revenue, as it tries to replicate its dominance in social gaming in the mobile market.
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