Zynga: Here Comes Another Social Media IPO, Will It Follow the Trend?
Tweet
Share
E-mail
Get Alerts P Hot Sheet
Join SI Premium – FREE
With Pandora (NYSE: P) trading back over its opening price and LinkedIn (Nasdaq: LNKD) back up between the $80 and $90 range, more companies like Groupon Inc. and Zynga Inc. are rushing to get the paperwork through to go public.
Zynga, which is rumored to file its S-1 with the SEC as early as Wednesday, is looking to raise $2 billion in its IPO. At such a price, market valuation would near a range of $15-$20 billion and would put the stock at double what the company was expecting just a few months ago.
The rumored price would have Zynga at the same valuation as the two largest videogame publishers, Electronic Arts (Nasdaq: ERTS) and Activision Blizzard (Nasdaq: ATVI) combined. Last year Zynga earned $850 million in revenue and is forecast to earn around $1.5 billion this year, ERTS is forecast to earn $3.9 billion and ATVI is expected to earn $4.04 billion in sales this year.
Zynga has chosen Morgan Stanley (NYSE: MS) to head the offering with Goldman Sachs (NYSE: GS) helping. The company is also in current talks with banks about a credit facility of a minimum of $1 billion.
Zynga is an online gaming company who is responsible for such games as "FarmVille" and other small games played on Facebook.
The company recently launched a new video game called "Empires & Allies" which is already the second most popular game on Facebook with 42 million average monthly players, behind its other game CityVille which has 88 million monthly players.
Investors and other market participants will be eager to see Zynga "numbers" which will be included with today's anticipated filing.
Zynga, which is rumored to file its S-1 with the SEC as early as Wednesday, is looking to raise $2 billion in its IPO. At such a price, market valuation would near a range of $15-$20 billion and would put the stock at double what the company was expecting just a few months ago.
The rumored price would have Zynga at the same valuation as the two largest videogame publishers, Electronic Arts (Nasdaq: ERTS) and Activision Blizzard (Nasdaq: ATVI) combined. Last year Zynga earned $850 million in revenue and is forecast to earn around $1.5 billion this year, ERTS is forecast to earn $3.9 billion and ATVI is expected to earn $4.04 billion in sales this year.
Zynga has chosen Morgan Stanley (NYSE: MS) to head the offering with Goldman Sachs (NYSE: GS) helping. The company is also in current talks with banks about a credit facility of a minimum of $1 billion.
Zynga is an online gaming company who is responsible for such games as "FarmVille" and other small games played on Facebook.
The company recently launched a new video game called "Empires & Allies" which is already the second most popular game on Facebook with 42 million average monthly players, behind its other game CityVille which has 88 million monthly players.
Investors and other market participants will be eager to see Zynga "numbers" which will be included with today's anticipated filing.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- EShallGo closes $1.75M registered direct offering at $1 per share
- QTREX Quantum prices $10 million registered direct offering
- Powerus wins $22.3M contract for counter-drone work in Middle East
Create E-mail Alert Related Categories
IPOs, Insiders' BlogRelated Entities
Morgan Stanley, S1Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
