Facebook Gaming Market Favors Biggest Players

Lazard Capital Markets released a report showed that Facebook game sector competition pressure is not less, but is more intense than ever before.

Just when you thought the Facebook gaming sector couldn't get any more competitive, another report comes out saying things have tightened even further.

Lazard Capital Markets released a report based on meetings with a half-dozen privately held social and mobile gaming companies: CrowdStar, Digital Chocolate, Funzio, HeyZap, IGG, and Tapjoy.

The company's conclusion on established players, such as Zynga and Electronic Arts is:

A toughening landscape bodes well (relatively) for established category leaders (such as Zynga and Electronic Arts) that have built large user bases and seem to enjoy network effects.

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Zynga Confirms Plans to Raise Up to $1.15B at $8.9B Valuation

Zynga boosted the amount it may raise in its upcoming initial public offering to $1.15 billion with a potential valuation of between $5.9 and $7 billion, according to a new amendment to its SEC filing.

Zynga plans to raise around $850 million to $1.15 billion at a $5.9 billion to $6.99 billion valuation in an initial public offering that will be priced on Dec. 15 and begin trading the next day. Counting options, the value would be $7.6 billion to $8.9 billion.

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