Zynga said to be readying for IPO

Zynga said to be readying for IPO

By Stuart Richardson

May 25th 2011 at 10:58AM

Wall Street awaiting initial public offering of online games giant

US casual gaming mega-studio Zynga is said to be readying to file for its initial public offering.

According to sources talking to allthingsd.com, said to be ‘close to the situation’, the filing with the Securities and Exchange Commission could take place this week, or next week at the outside.

The news arrives in the wake several recent impressive IPOs of online firms, including business networking site LinkedIn last week. LinkedIn now has a market valuation of $9bn, double its previous IPO amount.

The current Zynga valuation of $10bn is likely to increase significantly in an IPO.

The studio currently says it has 250m people playing its online titles every month, with CityVille attracting 90m monthly users according to AppData. This lead to the firm generating around $400m off around $800m in revenue last year.

Allthingsd.com’s sources point to Goldman Sachs as amongst the lead bankers in the potential Zynga offering. Zynga itself has yet to comment on its IPO plans.