Zynga: Farmville creator seeks IPO

29th June 2011

The Financial Times (paywall) says the company could raise as much as $2bn in the sale, based on a valuation of between $15bn and $20bn,

It also reports that the IPO will be led by Morgan Stanley, along with Bank of America Merrill Lynch, Barclays, Goldman Sachs and JPMorgan.

If the listing goes ahead Zynga will be the first of many big name social networking and media companies to go public.

Last month Groupon, filed to go public, as did LinkedIn earlier this year.

Zynga is the maker of FarmVille and Mafia Wars, which are free to play but charge for additional features.

The listings of social media companies have been questioned by analysts who feel that many may be overvalued.

For those that use and benefit from them, the price of their shares may be more than justified.

What do you think? Have your say below.

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1 thought on “Zynga: Farmville creator seeks IPO”

  1. Critic Al Rick says:

    Experts – just because it needs specific and complicated jargon to describe it does not make it necessarily right.

    Consider the current economic Mess; partly the outcome of fundamentally flawed academic economic theory. Such economists have developed and complicated theories so much that they have lost the plot. For instance, they see GDP, more particularly Growth, as THE criterion by which to judge the success of an economy.

    It is far simpler to consider an economy as a single business; the success of which is judged by its Profit, i.e. the economy’s Balance of Payments; and not necessarily by its Turnover, i.e. the economy’s GDP. As people with business acumen (commonsense) know, the size of a business’s annual Profit is neither necessarily nor consistently proportional to its annual Turnover. A very poorly run business can have an increasing Turnover whilst having a decreasing Profit.

    And that is what has happened with many economys in the West. UKplc hasn’t made a Profit in nearly 30 years; i.e. the UK has been run very poorly indeed. And that is essentially the combined product of academic ‘excellence’ and commonsense ‘illiteracy’.

    The most ingenious ideas are often the simplest. Put another way; the simplest of ideas sometimes only emanate from the most ingenious of minds.

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