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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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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From The Chatty
  • reply
    June 29, 2011 8:45 AM

    Andrew 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.

    • reply
      June 29, 2011 9:02 AM

      lol what a joke.

      What were their revenues up to last year ?
      I see them hitting a plateau sooner then they expect

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        June 29, 2011 9:07 AM

        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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        June 29, 2011 3:08 PM

        Dude....
        Think of a word that begins with C and ends in Hina

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          June 29, 2011 3:11 PM

          Hahahaha, L O fucking L.

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            June 29, 2011 3:22 PM

            You could say that Zynga ripped the Chinese off in this instance.

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        June 29, 2011 4:06 PM

        they make a shitload of money dude...and their market (social games) is in full expansion right now (versus triple AAA games for example)

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      June 29, 2011 3:06 PM

      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 :)

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        June 29, 2011 3:19 PM

        whats the disruptive tech youre referring to?

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          June 30, 2011 7:45 AM

          ipad, iPhone, Droid and Facebook platform.

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        June 29, 2011 3:33 PM

        yeah man those inflection points were CRYSTAL clear

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          June 30, 2011 7:51 AM

          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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        June 29, 2011 3:42 PM

        Well that told me. Big Time. But you seem to have a chip in your lil generalization. Don't worry I'm sure you aren't overcompensating; I know how difficult it is to find time to speak to the little people. The morons.

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        June 29, 2011 3:46 PM

        Romero?

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        June 29, 2011 4:08 PM

        Nope, I can still mock it quite comfortably. I've always been of the opinion that the general populace are idiots and this is proof. I however, am pure awesome sauce.

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          June 29, 2011 4:10 PM

          [deleted]

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            June 29, 2011 4:12 PM

            How many billions did the company you work for rake in last year? I'm not being smarmy, I'm generally curious.

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            June 29, 2011 4:16 PM

            You measure worth as a human being, as a creative and spiritual being by money earned from bored and horrendously unimaginative people? Gotcha.

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              June 29, 2011 4:42 PM

              Sounds like he's talking about corporate worth, not individual worth.

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              June 29, 2011 4:43 PM

              [deleted]

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                June 29, 2011 5:05 PM

                As I said below my comment was meant to be kind of a funny troll.

                My main gripe is that these games from Zynga are so simple and so bereft of creativity that it makes me kinda mad that some Indie devs who don't get the recognition they deserve for creating some serious masterpieces are sidelined over a company that focuses on churning out the same, tired repetetive forumlaic nonsense over and over.

                I hate the idea that money made = level of success as a person, company whatever. I suppose it depends on your overall goal though and no company (even an Idie dev were they to become much bigger as a result of sales) is immune to the corporate machine.

                I didn't mean to come across as a dick but I have a real issue with companies in a creative industry that focus more on making money than creating art (if that makes sense?). Sadly that seems to be most companies, which is I why I am persistently a grumpy motherfucker.

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                  June 29, 2011 5:09 PM

                  think of them more like slot machines than games. then it all falls into place

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                June 29, 2011 6:00 PM

                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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          June 29, 2011 4:17 PM

          awesome sauce tastes like smug dicks

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            June 29, 2011 4:20 PM

            My post was meant to be in jest. I'm not smug.

            I just find it hard to be impressed by a company that makes so much money from this. It's not a good thing.

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              June 29, 2011 4:22 PM

              By which I mean, you have indie developers (just look at the indie games on Steam) creating works of such artistic and imaginitive greatness that receive nowhere near the recognition they deserve.

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      June 29, 2011 3:18 PM

      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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      June 29, 2011 3:40 PM

      Maybe, Zynga would beat Microsoft.

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      June 29, 2011 3:46 PM

      So, blatantly evil company capitalizes on ignorance and boredom to make money. SURPRISE SURPRISE

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      June 29, 2011 4:05 PM

      Motherfuckers! I hope at least half of that $2 billion goes into the budget for ALPHA CENTARI 2

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        June 29, 2011 4:08 PM

        Wait, what?

        Zynga owns the Alpha Centauri IP?

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          June 29, 2011 4:17 PM

          no, but they do own the dude wot made it.

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            June 29, 2011 4:20 PM

            Yeah, I'm sure Zynga is going to start giving Brian Reynolds unlimited funds for a hardcore offline 4X game any second now.

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        June 29, 2011 4:13 PM

        wut?

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        June 29, 2011 4:16 PM

        EA owns the rights to Alpha Centauri. EA is buying Popcap, not Zynga.

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          June 30, 2011 7:54 AM

          EA is not buying PopCap - don't believe everything you read.

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      June 29, 2011 4:12 PM

      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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        June 29, 2011 4:16 PM

        Afaik they have more than 200 millions with just ONE game. I don't know of many websites with 200 millions active users than are not valued at > 1-2 billions

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          June 29, 2011 4:16 PM

          200 millions *users

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          June 29, 2011 4:27 PM

          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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      July 2, 2011 7:53 PM

      @Mwahser, hahah! I love your opinion about Zynga.