It's official: The Zynga headquarters is now worth more than Zynga. We learned in February that the maker of Farmville intended to sell its Design District office building for was what assumed to be at least double the 2012 purchasing price of $228 million. Well, according to a post this week from Halting Problem, several sources have confirmed the value of the property to be right around $540 million — in other words, more than Zynga itself.
"As of close of market [earlier this week], the company’s market value was around $2 billion," reads the piece. "However, due to its reserves of approximately $1.5 billion of cash on hand, analysts estimate that Zynga is actually worth around $500 million."
With company stock trading at $2.55, well below its 2011 IPO of $10 a share, it looks like the company realized its smartest move might be to capitalize on San Francisco's high-priced commercial real estate market even as it struggles amid possible industry bubble conditions to determine a sustainable business model for itself. And unless they have a few more buildings laying around they can flip, it seems they still might have a ways to go to figure that out.