Zynga IPO seeks up to $2 billion
Zynga is seeking "between $1.5 billion and $2 billion" as part of an initial stock offering (IPO) that could make the company one of the largest in gaming.
Zynga is the most prolific game publisher on social networks today. With FarmVille, Mafia Wars, and more recently, Empires & Allies, under its belt, Zynga commands the attention of millions of Facebook users with time to kill. That makes Zynga one of the most desired properties on the web today, as investors are hungry to buy into social gaming.
According to CNBC, Zynga is seeking "between $1.5 billion and $2 billion" as part of an initial public stock offering (IPO) that could be underway by Fall. The billion dollar figure is staggering, but even more shocking is the implication of what that means for the company's total worth. CNBC suggests the company could be following the "low-float model," which has companies sell only 10 percent of their shares. If Zynga follows this model, they are trying to reach a public valuation of up to $20 billion. This proposed figure would be significantly higher than the $5 billion valuation pegged on the company last year, and would easily make the company larger than EA and Activision combined.
Until Zynga's IPO launches though, these numbers are not representative of the company's actual worth. Given the uncertain conditions of the market today, it will be interesting to see how investors respond in agreement with Zynga's astronomical potential valuation.
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replyAndrew Yoon posted a new article, Zynga IPO seeks up to $2 billion.
Zynga is seeking "between $1.5 billion and $2 billion" as part of an initial stock offering (IPO) that could make the company one of the largest in gaming.-
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For 2011, the online gaming company expects revenue to reach $1.8 billion, from which it will make $630 million in profits.
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yeah this is going to be big money.
http://dealbook.nytimes.com/2011/06/28/zynga-picks-underwriters-for-i-p-o/?ref=business
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I remember when the morons on this site joked about Social games. Social games in triple digit growth yr after yr whilst the AAA mkt down 6% again yr after yr.
I understand the point of view that you do not like playing them but to mock them and here we are $2b IPO.
I personally embraced the social mkt and built a company in SFO 3 yrs ago in Social games and it gives me great pleasure to read this article knowing what we have all done.
I still love console games and play every night - I just don't mock and scorn when it is crystal clear 3 years ago what was going to happen plus with disruptive tech and inflection points rising what the new battlefront will look like and it is not $60 a game for sure :)-
whats the disruptive tech youre referring to?
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When you see the rise in registered DAU in Facebook and also activations of smartphones then they seem pretty clear. Did you know that 1/2 a mill Droid phones are activated a day..... I just find that a staggering number. what a great common, low entry point market. A small indie shop can now gain traction, millions of users and deliver great gameplay.
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Yeah lol
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think of them more like slot machines than games. then it all falls into place
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Well when someone says "not a real game" I think they mean that the gameplay is either shallow or the game mechanics are mostly intended to be addicting instead of fun. Sometimes I think it is defined as a short game or a simple game, even if the gameplay is not shallow, but often times those games are shallow.
It means different things to different people but that being said, there are differences, even if the definition seems a little gray. Usually the focus of these games is something else besides being interesting and fun.
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I hope to god this falls flat on its face... Zynga is an affront to gaming, imo.
They make disposable games for people who don't actually play games. I'm sure the developers/designers all feel they're raising the bar (and in some ways, they are) but I can't see this company having any lasting effect on gaming as a whole.-
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Maybe, Zynga would beat Microsoft.
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http://techcrunch.com/2009/10/31/scamville-the-social-gaming-ecosystem-of-hell/
To be fair, Pincus has been taking his company in a legitimate direction.
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Wait, what?
Zynga owns the Alpha Centauri IP?-
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wut?
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At least this company is making money but I can't help but think at this price they are being over valued. I feel like a lot of the IPOs lately is just a huge money grab to make a quick buck because people are hungry for IPOs go crazy and buy a bunch of shares even if the stock price is clearly way way too high. Looking at Renren, linkedin, and what what groupon is trying to do it just seems like a scam.
It would be nice to see something that has room to grow instead of coming tumbling down the first week on the market.-
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Zynga according to their IPO is looking at a value of 15-20 billion. Also many of these hot IPOs have been increasing the initial price offering over and over leading up to when it hits the market. If demand is high, and I assume it will be, then I could see the initial offering valuing the company far higher than 20 billion, which isn't making a lot of sense to me.
There is no doubt in my mind that Zynga is making a lot of money and will continue to do so, but I am trying to figure out what do I really think its worth, what do I think it is going to grow to?
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@Mwahser, hahah! I love your opinion about Zynga.
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