Zynga Could File for IPO as Early as Today
Trader Mark submits:Of the "Big 4" proposed Web 2.0 IPOs -- Facebook, Zynga, Twitter, and, for argument's sake, Groupon (GRPN) -- only the former two are showing the potential of big gains in profits at this time. Not that it will necessarily matter when they come public in a country starving for high growth stories. While I like Zynga the company, Zynga the proposed valuation is already troubling. Riding the back of Farmville, the bankers are proposing bringing this name out at $15-20B. At the latter price point, Zynga would be worth as much as Electronic Arts (ERTS) and Activision (ATVI) combined. (Those two companies have revenue of $8B+ versus under $1B for Zynga.)And we know whatever the IPO price is, the stock will jump 30-50%+ on day one, so Zynga will certainly surpass the two giants in the video game market combined. At these price points, this looks like aComplete Story »
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