NEW YORK (
, the creator of the popular "Farmville" game on
, is close to filing an initial public offering, according to reports.
The filing may come as early as this week, according to tech blog
, 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
(LNKD - Get Report)
public offering last week
in which the shares more than doubled on their first day of trading
. On Tuesday
, the so-called Facebook of Russia, saw shares surge 55% after its IPO and became the largest Internet offering in the U.S. since
(GOOG - Get Report)
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
, which are expected sometime next year. Online music radio company
already has filed to go public
, as has vacation rental company
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
, 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.
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