Wed, Jun 29, 2011 | 01:11 BST
Rumour – Zynga to go public with $20 billion valuation
Multiple news sources have claimed social gaming king Zynga is about to go public with a massive IPO.
Bloomberg reports the company could be on the stock market as soon as tomorrow, and cited GreenCrest Capital Management LLC’s Nitsan Hargil, who apparently head it from one of Zynga’s early “major investor[s]“.
Hargil said financial services firm Morgan Stanley will underwrite the offering, and that Zynga is expecting to raise around $1 billion in the IPO.
The Wall Street Journal, which has claimed “people familiar with the matter”, reports the IPO could pull up to $2 billion, and said the company is seeking a valuation of $20 billion.
Nobody at Zynga or Morgan Stanley wants to talk about this, unsurprisingly.
Zynga will make $1.5 billion in sales this year and generate $500 million of net income, Hargil estimated.
Zynga’s latest game, Empires and Allies, has already outstripped its phenomenally successful precursors like Farmville and Mafia Wars.