Zynga to Launch $1B IPO Tomorrow
As world-wide fans give much regard to their virtual farms, pets, mafia gangs, game creator Zynga has deemed it necessary to cast $1 billion international public offering (IPO) tomorrow, 30 June.
Following in the footsteps of other Internet stalwarts LinkedIn Corp., Pandora Media Inc. and Yandex NV, Zynga, the developer of addicting games "Farmville", "Texas HoldEm Poker", Mafia Wars, among others, has picked Morgan Stanley as their lead underwriter.
Bloomberg News said quoting said Nitsan Hargil, an analyst at GreenCrest: "Of all the companies we're looking at, it's the one we're most excited about because it's a real company with real revenues."
The New York-based analyst said Zynga's sales had been estimated to reach $1.5 billion and a $500 million net income.
Mr Hargil noted that Zynga does not really need the IPO, but it definitely makes the company financially stronger especially for its equity shareholders.
Zynga is backed by venture firms Foundry Group, Union Square Ventures, Kleiner Perkins Caufield & Byers, Institutional Venture Partners and Andreessen Horowitz. Russia's Digital Sky Technologies and Google Inc. (GOOG) are also stakeholders Bloomberg indicated.
Dani Dudeck, a spokeswoman for San Francisco-based Zynga, declined to comment, as did Pen Pendleton, a spokesman for New York-based Morgan Stanley.