Zynga has dropped so much in value that now even the value of its headquarters has exceeded its own.  A post on Halting Problem this week claims that the value of the property has been calculated at around $540 million, which is more than what Zynga itself is worth.

Zynga Inc HQ Is Now More Valuable Than Zynga Itself

Headquarters worth more than Zynga

Zynga bought the building in Design District in 2012 for $228 million. In February, the game maker indicated that it was looking to sell the property for double its purchase price. But Halting Problem, citing several sources, claims the value of the property to be around $540 million.

“As of close of market [earlier this week], the company’s market value was around $2 billion. However, due to its reserves of approximately $1.5 billion of cash on hand, analysts estimate that Zynga is actually worth around $500 million,” the post reads.

The past few years have been very tough for the game maker. It has been facing many hardships; it had to lay off a large number of employees several times. Also the acquisitions it made have not been very fruitful, and its stock has been performing poorly.

Zynga’s stock was worth $10 a share at the time of its IPO in 2011, and now it is trading at around $2.50. The company may have now realized that capitalizing on San Francisco’s high-priced commercial real estate market is the smartest move it can make at this time when it is struggling to determine a business model that will help it sustain itself as industry conditions are bubbly.

Stock skyrockets on strong bookings

Zynga’s latest earnings report did give its stock some respite though. The game maker reported better-than-expected first-quarter revenues, helping itsstock rise by as much as 13% on Thursday. Zynga’s earnings broke even on an adjusted basis in comparison with the forecasts of a 1 cent per share in losses.

Bookings were the bright spot for the online game maker with consumers spending $182 million on games, an 8% rise from the prior year. Though the company’s customer base declined, its ad sales increased. Zynga gave mixed projections, with revenue it projected being below the average analyst estimate. The company also revealed plans to launch ten games this year.

Speaking to analysts on the conference call, Zynga CEO Frank Gibeau said, “Over the long term, there is no reason why Zynga’s margins can’t be more in line with its peers. … Zynga has all the ingredients needed for a successful turnaround, and it’s well underway.”