Zynga, the San Francisco based company which specializes in Facebook games, priced its initial public offering late Thursday at $10 per share, raising $1 billion with a company value of about $7 billion. This offering makes it the largest Internet-related IPO since Google went public in 2004 with $1.4 billion.
The price was at the top of expectation which is a sign that investors are eager to dig into the latest in a series of high-profile technology IPOs this year. Zynga will start trading on Friday under the ticker “ZNGA”.
Zynga offers online games for just a few cents and up to a couple of dollars. It has more than 200 million monthly users and its most popular Facebook games are ”Farmville” and “CityVille.
Facebook, which takes a 30 percent cut of the revenue Zynga makes on its platform, is expected to go public next year raising as much as $10 billion.
In November, online coupon company Groupon Inc., another closely watched Internet IPO this year, raised $700 million in its IPO but slumped below its $20 U.S. issue price about three weeks later.
But unlike Groupon, Zynga is profitable. In 2010 Zynga earned a net income of $90.6 million, an unusual pre-IPO money maker in the sector.
TagsAmazon Apple aws Big Data big data analytics big data solutions cloud Cloud computing cloud management Cloud Marketing cloud news cloud provider cloud providers Cloud Security CRM data center management Dev & Design Enterprise Enterprise Marketing ERP Gartner Google Government HP hybrid cloud IaaS ibm IDC Infrastructure-as-a-service microsoft mobile apps mobile cloud Openstack PaaS platform-as-a-service Private Cloud Public Cloud rackspace SaaS Salesforce.com Social Media software-as-a-service virtualization vmware weekly digest