Social Game Developer Zynga May Have Low-Float IPO - Bloomberg
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Zynga, maker of such popular social games such as FarmVille, CityVille, RewardVille, other -Ville games, and Mafia Wars, is said to plan a low-float initial public offering inspired by LinkedIn's (NYSE: LNKD) recent IPO.
According to Bloomberg, which cited people familiar with the matter, Zynga may make as little as 10 percent of its shares available to the public in order to retain control while raising capital to expand. U.S. tech companies offered an average of 24 percent of outstanding shares through IPOs in 2010.
OpenTable (Nasdaq: OPEN) employed a similar strategy with its IPO in 2009, offering just 15 percent initially, and doubling that four months later as prices stabilized.
Notably, LinkedIn Chairman, Reid Hoffman, also sits on Zynga's Board.
According to Bloomberg, which cited people familiar with the matter, Zynga may make as little as 10 percent of its shares available to the public in order to retain control while raising capital to expand. U.S. tech companies offered an average of 24 percent of outstanding shares through IPOs in 2010.
OpenTable (Nasdaq: OPEN) employed a similar strategy with its IPO in 2009, offering just 15 percent initially, and doubling that four months later as prices stabilized.
Notably, LinkedIn Chairman, Reid Hoffman, also sits on Zynga's Board.
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