Rumour – Zynga prices IPO at $10 per share

By Brenna Hillier
16 December 2011 04:10 GMT

Talk surrounding the looming Zynga initial public offering has the social games publisher asking $10 for each of its 100 million shares.

Bloomberg cites its usual insider sources for the figures, which would see Zynga raising $1 billion from its IPO.

In the lead up to the IPO, Zynga has valued itself at $7 billion, close to seven times its estimated annual revenue. In terms of sales to valuation, that’s about three times what EA commands.

The $10 asking point is a high market value for an IPO, and would make Zynga’s offering the most lucrative since Google went public in 2004. For comparison purposes, Google shares at time of writing are trading at over $619. Nintendo, Microsoft, EA, Sony and Activision command a comparatively modest $116 , $25, $21, $17 and $12 respectively.

Zynga is expected to debut on the stock exchange during US trading hours on Friday with the ticker label ZNGA.

Thanks, Business Insider.

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