Zynga Files For $1 Billion IPO
Zynga has filed for a $1 billion IPO (initial public offering). The social network game developer, known for browser-based applications such as FarmVille and CityVille, submitted the SEC S-1 filing today (Friday July 1, 2011). The company, founded by CEO Mark Pincus in 2007, has a whopping 60 million daily activer users, 232 million monthly active users, and brought in nearly $600 million dollars in revenue last year.
Several social media sites have already gone, or plan to go, public. Groupon filed for IPO in June, while LinkedIn went public in May and nearly doubled its value. Zynga is rumored to eventually offer about 10 percent of its shares, valued at $20 billion. Will Zynga be as successful on the market as LinkedIn? Time will tell. But, as specified in section of the document highlighting potential risk factors, Zynga needs to maintain a good relationship with Facebook (where most users play their games) in order to continue to flourish.
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