This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Zynga Reportedly Nearing an IPO

NEW YORK ( TheStreet) - Zynga, the creator of the popular "Farmville" game on Facebook, is close to filing an initial public offering, according to reports.

The filing may come as early as this week, according to tech blog AllThingsDigital, although subsequent reports said a June timeline was more likely.
Zynga may be close to filing for an initial public offering.

Zynga's plans to go public come on the heels of LinkedIn's (LNKD - Get Report) public offering last week in which the shares more than doubled on their first day of trading. On Tuesday Yandex (YNDX - Get Report), the so-called Facebook of Russia, saw shares surge 55% after its IPO and became the largest Internet offering in the U.S. since Google's (GOOG - Get Report) in 2004.

Strong demand for Internet and social media-based companies has allayed some investor's concerns that the tech sector is overvalued and is reminiscent of the dot-com boom and bust.

Wall Street is already preparing for eventual IPOs from heavyweights like Facebook and Groupon, which are expected sometime next year. Online music radio company Pandora already has filed to go public, as has vacation rental company HomeAway.

Zynga has a $8 billion valuation, according to SharesPost, a secondary market for trading shares of privately held companies. The company's worth tops that of public video game publisher Electronic Arts (ERTS), which has a $7.8 billion market cap. Last month, Zynga hired former EA Chief Operating Officer John Schappert in a senior executive role.

Zynga makes money from the sale of virtual goods -- digital items that gamers buy with real cash such as a cow or corn on "FarmVille." While most virtual goods cost from $1 to $3, these figures can add up -- the U.S. virtual goods market alone is expected to reach over $2.1 billion this year, up from $1.6 billion in 2010, according to research firm Inside Network.

In February, Zynga was reportedly in talks to raise $250 million in funding at a $9 billion valuation.

The company is profitable and generated about $850 million in revenue last year.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YNDX $20.47 0.00%
GOOG $693.01 0.00%
LNKD $125.31 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs