Zynga Plans To Raise $925M In IPO
Zynga Inc could raise $925 million, less than previously planned, in what is still one of the largest and most hotly anticipated Internet IPOs in years.
The Facebook game maker plans to sell 100 million shares, or 14.3 per cent of the company, at $8.50 to $10 per share, according to a regulatory filing on Friday.
Zynga's debut follows hot on the heels of Groupon Inc and LinkedIn Corp's this year, which helped revive a market for first-time share sales that had sputtered in recent years.
Based on the midpoint of Zynga's price range, the company could raise $925 million. It had previously filed in July to raise up to $1 billion.
The IPO would value the 5-year-old company, which made its name on viral games such as "FarmVille," at between $7.6 billion and $8.9 billion, catapulting it to the top of the US game industry.
Electronic Arts Inc has a market value of $7.73 billion, while Activision Blizzard Inc's is $14.21 billion.While its games are free to play, Zynga makes money from selling virtual items -- such as tractors and weapons -- that players then use.