×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: FarmVille | Creator | Zynga | Files | IPO | 1 Billion

FarmVille Creator Zynga Files for IPO of up to $1 Billion

Friday, 01 July 2011 12:37 PM

Zynga Inc. filed paperwork for an initial public offering Friday, the latest in a series of hot social media companies to seek capital in the U.S. public markets.

The company, which is behind a series of popular games on Facebook, said it hoped to raise up to $1 billion. It did not specify the number of shares it plans to sell or give an expected price range.

A source previously told Reuters that Zynga's IPO could raise $1.5 billion to $2 billion and could value the company at $15 billion to $20 billion.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

Online video game revenue is expected to reach $18 billion by the end of 2011 and $26.9 billion by 2015, according to DFC Intelligence, a market research firm on interactive entertainment.

In the three months ended March 31, Zynga's common stockholders broke even on revenue of $235.4 million. The company, whose games include FarmVille and Mafia Wars, is the top games publisher on Facebook. Its main source of revenue is selling virtual items such as tractors and weapons in games that users play on their computers.

Zynga has expanded rapidly through small acquisitions at the rate of about one a month in the last year, as it seeks to dominate the games market and expand internationally.

Underwriters are being led by Morgan Stanley and Goldman Sachs.

© 2022 Thomson/Reuters. All rights reserved.


FinanceNews
Zynga Inc. filed paperwork for an initial public offeringFriday, the latest in a series of hot social media companies to seek capital in the U.S. public markets. The company, which is behind a series of popular games on Facebook, said it hoped to raise up to $1 billion. It...
FarmVille,Creator,Zynga,Files,IPO,1 Billion
250
2011-37-01
Friday, 01 July 2011 12:37 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved