Trade turmoil 'delays Zynga IPO'

Trade turmoil 'delays Zynga IPO'

By Rob Crossley

August 30th 2011 at 10:30AM

Farmville creator 'will sit until market recovers'

Social games giant Zynga is likely to delay its leap onto the stock market due to Wall Street disorder, a new report suggests.

The company will wait until at least November to list its shares, alleged anonymous insiders told the New York Post.

The paper, citing “two sources with knowledge of Zynga's plans”, said Zynga initially wanted to complete its IPO as soon as possible but is "no longer in a rush because of the rocky stock markets."

Zynga filed for an IPO worth up to $1 billion in July.

But since then global markets have been griped by trade anxieties, partly due to the politics surrounding America’s need to raise debt levels and fears over Eurozone nations defaulting on loan payments.

Analysts say that city insecurities have led investors to focus on safer bets.

Piers-Harding Rolls, a games analyst at IHS Screen Digest, said it would be difficult for any company presently seeking an IPO.

“People are looking for safe havens,” he told Develop.

“So a company like Zynga, which is relatively new to the market, might be considered less secure. Established brands present a safer option.”