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Zynga lowering IPO valuation to $10 billion range

Zynga lowering IPO valuation, $10 billion ballpark figure

| Business, Financial & Legal News | Posted: Dec 1, 2011 12:47 pm

Social game developer Zynga are set to start talking with potential public investors on Monday ahead of a mid-December IPO. Reuters have some early details, with reports of Zynga wanting to raise around $900 million by selling 10-percent of its stock at a range between $8 and $10 per share, for a valuation of around $10 billion, according to the report.

 

TweakTown image news/2/1/21762_16_zynga_lowering_ipo_valuation_to_10_billion_range.jpg

 

It was speculated previously that Zynga would be eyeing down the hallway of between $15 and $20 billion, but those estimates are quite off from what we've recently seen. What is contributing to the scale down in valuation? Well, Zynga have concerns over larger economic issues such as the ongoing financial crisis in Europe, and the poor reception that other tech IPOs have had recently.

 

Groupon, for example, went public at $17.8 billion and soon dropped to $10 billion, but have been slowly clawing their way back lately. The lower price could also be declines in Zynga's Facebook traffic numbers, too. We should find out sometime next week how it all goes.

NEWS SOURCES:Techcrunch.com

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