initial public offerings (IPOs) trading on American exchanges

Thursday, December 1, 2011

Zynga lowering IPO valuation to $10 billion; plans mid-December IPO

Online games developer Zynga Inc. set the terms of its planned IPO Friday, seeking as much as $1 billion by selling 100 million shares at a price between $8.50 and $10. It will sell 10% of its stock, for a valuation of around $10 billion, according to the report.

  • Zynga, unlike many of its peers, is profitable. It recorded earnings of $30.7 million for the first nine months of this year, on revenue of $828.9 million.

Speculation had previously been that it would go for between $15 billion and $20 billion, and a third-party valuation analysis that Zynga had provided in a recent filing amendment indicated it was worth $14.05 billion.

At the $10 end of its IPO range, Zynga commands a valuation of nearly $7 billion, according to an update prospectus it filed Friday morning.

The company is best known for such social games as FarmVille and Mafia Wars, played on Facebook's social networking website. Zynga is scheduled to launch its marketing road show Monday, and expected to begin trading on the Nasdaq under the symbol "ZNGA" by Dec. 16.

General Information
Category Games, Video and Entertainment
Employees 115
Founded 7/07
Description Network of gaming applications

Baltimore, USA
Los Angeles, USA

Justin Waldron,  Co-founder and VP
Mark Pincus,  CEO
Cadir B. Lee,  Chief Technology Officer

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