Zynga IPO: Largest since Google’s

Last Friday, the 16th of December 2011, Zynga IPO started to be traded. Zynga IPO is sold at $10 per share and will be open until it reaches approximately $1.15 billion. Because of that, Zynga IPO is the largest initial public offering from a United States internet company after Google’s initial public offering raised $1.7 billion. Wow amazing numbers! So, what makes Zynga so confident? Continue reading.

Zynga is a game company located in San Francisco, United States of America. Zynga makes web-based games. This company is fully responsible for Mafia Wars, FarmVille, CityVille, Texas HoldEm Poker, and other web-based games that are available in social networking sites like MySpace and Facebook. Even though they make web-based games, the games are also available in iOS and Android as stand-alone apps. Five of Zynga’s exclusive Facebook games are also the five most-played game application in Facebook. They have about 200 million monthly active users. Now, Zynga has 15 official studios worldwide and about three thousand employees. Zynga gets money from in-game balance purchases via credit cards or PayPal payment processor. They sell in-game decoration, skills, earlier stamina refill, and much more. Even though Zynga has hell a lot of monthly active users worldwide and increasing every day, it does not guarantee more balance buyers because only 3% of total players that buy things in-game and Zynga apps with no advertisement.

Zynga IPO

Zynga IPO
On the first of July this year, Zynga filed with SEC to raise $1 billion in Zynga IPO. And on the 16th of December, Zynga started trading Zynga IPO under the name ZNGA in the National Association of Securities Dealers Automated Quotation (NASDAQ) stock market that is the world’s largest stock market exchange after the New York Stock Exchange. Zynga IPO is in the market with couples of other high-profile tech stocks like LinkedIn (LNKD), Pandora (P), Zillow (Z), Renren (RENN), Groupon (GRPN), and Angie’s List (ANGI). Zynga plans to sell 100 million Zynga IPO shares, each sold at $10. It is about 14 percent of Zynga’s common stock. Investors are really interested in Zynga IPO since the company is the largest game maker for Facebook. But the fact is not that simple. Even other big tech company like LinkedIn has suffered from severe initial public offering drop. And it is true because Zynga IPO were closed down 5 percent the first day of trade.

The fact did not shock Zynga. They are still capable. Zynga’s Chief Executife Officer and Founder, Mark Pincus, said that the amount of players will surely double in time. Thay also has signed and filed S1-Form with Facebook about its relationship with Facebook. It is stated that Zynga has to make exclusive game titles for Facebook. In return, Facebook has to help Zynga to reach a determined growth targets for monthly unique users of Zynga games. This agreement lasts for five years starting from last year. They also announced on the 11th of October 2011 that they are planning to create their own platform that allows users to play Zynga games called “Project Z”. But it will be still tied to Facebook.

So, how will Zynga IPO survive? Buy packs of popcorn, sit back, and watch.