Zynga Seeks To Raise funds: Now Valued at More Than $7 Billion

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Zynga Seeks To Raise funds: Now Valued at More Than $7 Billion [online.wsj.com]

Social-gaming company Zynga Inc. is holding discussions with potential investors about raising around $250 million in new funding in a deal that could value the three-year-old start-up at between $7 billion and $9 billion, according to people familiar with the matter.

In April Zynga filed papers authorizing the issuance of new stock that valued the company at about $4 billion.

The discussions are the latest sign of the investor frenzy around a small class of large, fast-growing Web start-ups focused on the consumer market that have yet to go public. Facebook Inc., Twitter Inc. and the group-buying service Groupon Inc. have all recently raised large rounds of funding at sky-high valuations, with some recent discussions concerning Twitter valuing the micro-blogging service at $8 billion to $10 billion. The business social network Linked In Corp. and Internet radio service Pandora Media Inc. recently filed to go public.

[edited by: incrediBILL at 9:31 pm (utc) on Feb 14, 2011]
[edit reason] fixed broken link [/edit]

[incrediBILL]

The investors should know better.

They never learn.

Here we go with another round of massively overpriced web companies, this time around, simply because they're tied to social media.

[dibbern2]

Would this value an internet game company higher than a General Motors? Boing? IBM? a major airline? some of our smaller states? a few dozen nations?

[scooterdude]

there so many competing sies in that sector that i wonder how they grew to their current traffic level