AfterDawn: News

Zynga targets $925 million in IPO

IPO is one of the year's most anticipated.

Zynga plans to sell 100 million shares at $8.95 to $10 per share, amounting to around 14.3 percent of the company. It hopes it will raised $925 million, which is less than the FarmVille-developer had previously planned to aim for.



The IPO would value Zynga between $7.7 billion and $9.04 billion. Electronic Arts has a market value of $7.73 billion, while Activision Blizzard Inc's sites at $14.21 billion.

Zynga was established five years ago, and got its success with viral games such as FarmVille. The games are free to play, but Zynga makes money by selling virtual items in the games to players.

Zynga's IPO follows that of Groupon Inc and LinkedIn Corp earlier this year. Both helped to revive a market for first-time share sales that had remained weak in recent years.

Written by: James Delahunty @ 2 Dec 2011 8:07

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• 2 comments

• LordRuss

  And seemed to revive a tired (& relentlessly ignorant 'real money for fake money' environment that you will never catch me doing. I mean, I 'suppose' you could juxtapose this behavior to that of being like kids dumping quarters into the game machines back in the 70s & 80s, but it REALLY seems icky & removed. Somehow the two feel like puzzles that can be put together.
  
  But this Zynga one... the way it work & the example I gave? Just like all the other games & 'pay for you fake money' failures that should have been the death of that dot bomb business model... The pictures are matching up, but the puzzle pieces aren't.
  

  http://onlyinrussellsworld.blogspot.com

  2.12.2011 11:55 #1

• pigman

  Is this company seriously considered to be the same value as EA?!
  
  BTW, decimal place in wrong place on share price.

  6.12.2011 15:26 #2