Considering the current market condition, there were some reports that Zynga is delaying its IPO, which was originally scheduled for next month. Zynga is the company behind popular games in Facebook like Farmville, Mafia Wars and CityVille. According to some reports, Zynga is a little bit worried about the stock market condition, which appears to be quite unstable a little bit rocky that is why there are some rumors that the company has decided to postpone its IPO release. If you still can remember Zynga has announced back in June its intention to go public.
Zynga has decided to go public with the main objective of raising around $ 1.5 to $ 2 billion in its IPO. Well, this could be possible considering the popularity of the games from Zynga, but now that the stock market is going through a tough time, Zynga seems to have some doubts about it and just decided to wait for the right time. Other companies such as Groupon who also expressed to go public several months ago have also decided to delay its IPO as well. However, Groupon’s postponement of its IPO is due to some SEC accounting concerns and not mainly because of the current stock market situation.
Zynga has already set the price range for its IPO at $ 8.50 to $ 10 per share. Apparently, this highly anticipated debut could raise the company’s valuation to around $ 7 billion. However, Zynga has to wait for the right time to make sure that its IPO will be a success. Zynga’s rumored decision to postpone its IPO seems to be the best decision at present considering the fact that there were some reports and observations that a lot of investors have been shying away from newly public technology stocks because of the recent developments in the stock market. This is also the same reason why a lot of these technology stocks are trading below its offering prices.
Zynga is planning to sell around 100 million shares, which is approximately 14.3 percent of its total shares. This is actually one of the biggest offerings that will be made in the stock market. Zynga has not yet announced anything about these rumors, so let us just wait and see whether they will push through with a December IPO or not.
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Tags: farmville, zynga, zynga ipo, zynga ipo valuation, zynga stock market
