Zynga IPO values company at $7bn

Zynga, the online social gaming company behind Facebook games such as FarmVille and Mafia Wars, has been valued at $7bn (£4.5bn), following its initial public offering.

FarmVille: Zynga game
FarmVille: Zynga game

The San Francisco-based company is reported to have sold shares at the top of its price range, having offered 100 million at the price of $10 yesterday, making it the biggest tech IPO since Google raised $1.7bn in 2004.

Zynga, launched in 2007, has been held up as a Facebook business success story, with its games largely played on the social networking site.

The company is planning to use the IPO proceeds for game development and marketing.

The launch comes ahead of Facebook's hotly anticipated IPO, which has been tipped for the second quarter of 2012 and is expected to value the company in the region of $100bn.

This year has seen a series of high-profile floatations from internet companies, including LinkedIn, Groupon and Pandora.

However the sky-high valuations have sparked concern that a social media investors' bubble is forming, a decade after the dotcom crash.

Zynga could not be reached at the time of publishing.

Follow Sarah Shearman on Twitter @Shearmans

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up

Waitrose has joined forces with Channel 4 and produced a Saturday morning lifestyle and cookery programme called 'Weekend Kitchen with Waitrose', with TV presenters Lisa Snowdon and Steve Jones signed up to front it.

Share
Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

Newspaper ABCs: Guardian smashes through 100m browsers in March 2014

The Guardian reached more than 100 million monthly unique browsers for the first time in March, according to Audit Bureau of Circulations figures published today.

Share
Toyota achieves the impossible by calming angry Roman drivers

Toyota achieves the impossible by calming angry Roman drivers

Italians swearing and shouting while sitting behind the wheels of their cars and negotiating the busy streets of Rome could become a thing of the past if they all start driving Toyota's Hybrid vehicles, implies a short film for the car brand.

Share

Get news by email