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Finance

Zynga makes $1 billion with $10 share price

Fri 16 Dec 2011 7:49am GMT / 2:49am EST / 11:49pm PST
Finance

All shares sold at higher end of price range as Zynga stocks starts trading

Zynga has raised $1 billion in its much anticipated IPO today, after offering its 100 million shares at $10 each.

Bloomberg reported the $1 billion (644 million) figure this morning, a total that comes below Google's $1.9 billion in 2004, but represents a massive IPO for an internet company.

Reports of the $10 price circulated late last night, before confirmation came from the Farmville publisher in the form of a press release. Earlier this week the price range for shares had been set between $8.50 and $10.

"Zynga and its games are becoming consumer brands and there is a lot of recognition for growth potential," analyst Colin Sebastian told Bloomberg late last night.

"My guess is that the shares will be well-received."

Earlier this week analysts seemed cool on the social gaming giant, voicing concerns over Facebook dependence and repeating the success of games like Farmville.

15 Comments

Bruce Everiss Marketing Consultant

1,692 594 0.4
Now what are they going to buy? EA?

Posted:2 years ago

#1
Zynga are not even close to the worth of the long established EA. Dont worry, this IPO price will not likely last :)

Posted:2 years ago

#2

Andrew Goodchild Studying development, Train2Game

1,254 421 0.3
I'm waiting for a comment from Rovio High Eagle on why Rovio must surely be worth 2 billion in light of this.

Posted:2 years ago

#3
Because of plush toy merchandising?

Posted:2 years ago

#4

David Bachowski VP Business Development, Babaroga

66 0 0.0
and movies!

Posted:2 years ago

#5

Christopher Bowen Editor in Chief, Gaming Bus

459 738 1.6
They're not a games company, after all!

Posted:2 years ago

#6

Jeffrey Kesselman CTO, Nphos

112 0 0.0
Time to start a pool as to where Zynga stock will be in 6 months, 9 moths and a year...

Posted:2 years ago

#7

John Donnelly Quality Assurance

313 38 0.1
Forget waiting that long.
I want to see the price at the close of market Monday.

Posted:2 years ago

#8

Sandy Lobban Founder and Creative Director, Noise Me Up

315 208 0.7
They aren't what we traditionally call games. No great deal of engagement in these apps from what Ive seen, but there's nothing to say they can't make what traditional developers make, and enter that space. I guess when the funds are there, then it's totally possible to diversify, grow and hire the right people. It'll come down to whether they can manage that or not. I don't think the current apps are the future of Zynga.

Posted:2 years ago

#9

Andrew Goodchild Studying development, Train2Game

1,254 421 0.3
Did the final terms give Mark Pincus the 7x voting power per share or whatever that was muted? If so I guess if he kept 7% he would be able to tiebreak or win any vote?

Posted:2 years ago

#10
As perdicted, the shares start rollin back.

"Shares in the company initially rose as much as 10% on the Nasdaq on Friday before rolling back to close at $9.50"

Posted:2 years ago

#11

Greg Wilcox Creator, Destroy All Fanboys!

2,194 1,169 0.5
This is like watching some kid with seventeen packs of bubble gum in his mouth blowing that huge one that you KNOW is going to pop after it breaks the record. I'll be in the corner under the umbrella...

Posted:2 years ago

#12

John Donnelly Quality Assurance

313 38 0.1
In after hours trading the price had a high of $10.25 but went as low as $ 9.25

Posted:2 years ago

#13

John Donnelly Quality Assurance

313 38 0.1
Actually, looking at the pre-open volumes and prices the range is $9.70-$9.35

It may open a fraction higher but those are quotes not actual trades from what I can see on the web.

Posted:2 years ago

#14

Gabriel Pendleton Unity Developer, Bully!

7 0 0.0
Come on now guys, all because they don't make first person shooters, they are still a game company with a great model. Anyone who knows the industry can appreciate that. BUT their IPO will not last or perform well. They are late to a already under performing market. Tech companies have a bad history unless you Google, apple or amazon. I would suggest waiting for the stock to go low and buy for a short term investment.

Posted:2 years ago

#15

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