AfterDawn: Tech news

Zynga IPO ready to set records

Written by Andre Yoskowitz (Google+) @ 29 Jun 2011 2:10 User comments (2)

Zynga IPO ready to set records Zynga, the social gaming behemoth, is filing for an IPO that will value the company at upwards of $20 billion, a new record for "social" media sites and a high for U.S.-based game companies.
The company is behind hits like CityVille, FarmVille, Live Hold Em Poker Pro and Empires & Allies, each of which have multi-millions of active users. CityVille, for example, has 88 million monthly users on Facebook and Zynga games have a total of 271 million active monthly users.

Last month, the professional social network LinkedIn IPO'd and saw huge gains its first day before falling 50 percent over the next three weeks. Having since recovered some, the company has an $8 billion market value despite never having seen a profit. Streaming music service Pandora IPO'd earlier this month and now has a $2.8 billion market value despite never having seen a profit, either.

Zynga is looking to raise about $1.5 billion with its IPO, which would value the company somewhere between $15-$20 billion, higher than Activision Blizzard ($13.26 billion) and Electronic Arts ($7.5 billion).

The company is insanely profitable, already, and made $400 million net profit on $850 million in revenue in 2010. Analysts expect the company to make around $500 million net profit on revenue of $1.5 billion in 2011. The company primarily makes money from the sale of virtual goods (upgraded farm equipment in FarmVille, millions of poker chips in Live Hold Em, etc) since their games are all free.

Previous Next  

2 user comments

129.6.2011 9:03

Wow, people are dumb. Buying virtual goods that they cant sell back.

PS. why is this in "consoles"

27.7.2011 11:07

I smell the next .com bubble!

Comments have been disabled for this article.

Latest news

Intel announces: First commercial 5G modem in development Intel announces: First commercial 5G modem in development (20 Nov 2017 16:46)
The world's second largest semiconductor manufacturer, Intel, has announced a major project in mobile chips. The company has introduced a future portfolio for commercial 5G modems. According ....
1 user comment
CCleaner becomes adware, here's how to avoid Avast ads CCleaner becomes adware, here's how to avoid Avast ads (20 Nov 2017 13:00)
One of the more popular Windows cleanup tools, CCleaner, has added Avast ads on to their software. After being acquired by Avast, CCleaner wants you to install the virus protection suite along ....
3 user comments
Tesla's power pack charges your phone like a Supercharger Tesla's power pack charges your phone like a Supercharger (18 Nov 2017 13:25)
Tesla announced yesterday two incredible products that are due in two or three years. However, you might not have the money, nor the interest, to buy either Tesla Semi or Roadster, but there ....
Apple's newest product misses the entire holiday season, hits the stores in early 2018 Apple's newest product misses the entire holiday season, hits the stores in early 2018 (18 Nov 2017 12:20)
Apple has decided to push back one of the products originally revealed nearly 6 months ago in WWDC. The smart speaker, dubbed HomePod, has been delayed further and won't be seen in stores this ....
1 user comment
Tesla unveils two new vehicles, electric semi and super-fast new Roadster Tesla unveils two new vehicles, electric semi and super-fast new Roadster (17 Nov 2017 10:53)
Tesla has today announced two new vehicle prototypes that will bring the total number of Tesla cars, and now trucks, to six. As expected Tesla unveiled their "beastly" semi-truck the first time ....
1 user comment

News archive