Who would have guessed that farmville would get this company a $1B valuation? Brilliant!
Zynga files for IPO of up to $1 billion
Social game maker saw revenue, earnings surge in 2010
By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) — Zynga Inc. filed for an initial public offering Friday that has the social gaming company seeking to raise as much as $1 billion from investors to continue to build out its booming business.
Fast-growing gaming company Zygna faces questions about how much the company can grow outside of Facebook. Heard on the Street's Rolfe Winkler discusses.
In a filing with the Securities and Exchange Commission, Zynga didn’t spell out a proposed offering-price range or number of shares to be included in the deal. The company also didn’t specify on which exchange it intends to list its shares.
If completed, Zynga’s IPO would be the latest debut of a high-profile online social-networking company this year. LinkedIn (NYSE:LNKD) completed its IPO in late May, and Groupon Inc. has since filed its own papers for a deal expected to be executed later this year.
Zynga, which makes popular Facebook games such as “FarmVille” and “CityVille,” saw revenues surge nearly 400% to $597.5 million in 2010 and reported a net profit of $90.6 million for the year. Earnings for the first quarter of this year were $11.8 million on revenue of $235.4 million — putting the company on track to surpass the $1 billion mark in revenue this year.
Monthly active users as of March 31 totaled 236 million — flat with the same period the previous year and up 21% from the end of December.