Farmville creator Zynga valued at $7 billion

16th December 2011

The firm runs games off popular social networking sites but in particular Facebook.

As Dealbook notes this is not quite the dizzy heights of a $20bn valuation once talked about but adds it is "not shabby for a four-year-old company that sells digital livestock and emerald ponies".

Some investors had been wary in the run up to the float because Japanese online gaming firm Nexon, which operates on a similar model, fell back from its float price earlier in the week.

As CityAm reports Nexon fell to ¥1,270 a share below its IPO price of ¥1,300 this week, but its owners may not be too downhearted. Nexon floated in a $1.2bn (£776m) initial public offering – Japan's biggest this year.

Both firms work to a freemium model, where games are free but you can buy additional features for the games.

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