Online game maker Zynga is expected to begin its IPO road show on Monday and price the offering on Dec. 15. It’s pretty tight timing — if the company can’t get the deal done, it won’t be able to have an offering until at least late January because of the holidays.
While it’s true that the equities markets have posted stellar results this week, volatility remains extreme. So it should be no surprise that a report from Reuters notes that the valuation of Zynga is much lower than anticipated: $10 billion, which implies an IPO price range of $8-$10 a share. The company expects to raise $900 million or so.
These new figures are certainly a disappointment for Zynga’s bankers, which include Morgan Stanley and Goldman Sachs. This past summer, the buzz was that the company’s valuation would be at least 20 billion. Read