Technology Focus: Does Zynga’s IPO Set a New Trend For Facebook?

Last week, investors could finally buy a share of Internet gaming site Zynga, which was priced Thursday at $10 a share in the company's $1 billion initial public offering.

The first outsiders to buy shares of San Francisco-based Zynga bid $11 but before long, the price fell to $9.09 in Friday's mixed market. They closed at $9.50 giving Zynga a market capitalization of $7 billion or maybe $8.9 billion after unexercised options and warrants.

That values the company far ahead of long-established gamers Electronic Arts and slightly below Activision Blizzard.

Likely the final technology related IPO of 2011,  Zynga's performance clearly raises the ante for its ally, Facebook, the 800-million-member San Francisco social networking behemoth, where as much as 80 percent of Zynga's games originate.

Under U.S. securities law, Facebook, now that it has more than 500 shareholders, will be required to file financial data with the Securities and Exchange Commission for the first quarter of 2012 or conduct its own IPO. The sky's the limit on a Facebook valuation, which could be multiples of Zynga's.

read more at http://www.ibtimes.com/articles/269024/20111218/technology-focus-does-zy...
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