Zynga offers $1 Billion IPO due to booming popularity of ‘Farmville’
Zynga has filed for an initial public offering (IPO). It currently has a $20 billion valuation and has plans to offer 10% of its shares. Morgan Stanley is in charge of the offering.
Zynga is the popular gaming company behind hits such as Farmville, and the owner of other smash titles such as Words with Friends on Android and iPhone.
Mark Pincus, the company’s CEO, expects that Zynga can earn $1 billion through the IPO. Unlike some other recent tech IPOs, which have caused many to claim the industry is in the midst of a “tech bubble,” Zynga has had solid earnings through its business model, which typically relies on in-app purchases for in-game currency.
The firm reportedly recorded a profit of $90.6 million in 2011 on revenues of nearly $600 million. Zynga currently remains the top Facebook gaming app on the social networking site, boasting 272.5 million active users across its biggest titles such as Cityville and Farmville.
Check out this hilarious parody of Facebook and Zynga’s Farmville….