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Zynga Priming Pre-Turkey Day IPO

Social game company expected to have a $14B valuation


ZyngaIt’s going to be a busy November for IPOs.

On Nov. 4, Groupon will see if it can find enough buyers for its deal at a hefty $11-plus billion valuation. Then, on the week of Nov. 24, game-maker Zynga will try to pull off its offering, according to a Reuters report. Zynga’s valuation actually is expected to be $14 billion (at least according to the prospectus). This would make the company more valuable than Electronic Arts (NASDAQ:ERTS).

Crazy stuff? Perhaps. But Zynga clearly is the dominant player in social games, especially on the Facebook platform. Popular titles include FarmVille and CityVille. In all, Zynga’s games have about 60 million average daily active users.

There seems to be no end to the growth, and it looks like Zynga will reach $1 billion in revenues in 2011 — and most importantly, it will be profitable.

For a little more history on Zynga, check out these entries in the IPO Playbook:

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned stocks.

Article printed from InvestorPlace Media,

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