Zynga’s IPO raises around $1 billion

December 16, 2011 — Fusion DigiNet

Zynga, the games developer founded and led by Mark Pincus, has sold 100 million shares (around 11% of the company) at $10 each in its initial public offering, raising around $1 billion. This is at the top end of expectations. Two weeks ago its bankers projected a range of $8.50 to $10. The IPO values Zynga at around $7 billion, roughly 11 times last year’s sales. A good result, but still far less than recent social network offerings. A valuation of $20 billion dollars was suggested earlier this year. Zynga’s most-senior executives and early investors largely are holding onto their shares.

Zynga makes games mainly for Facebook. Games include FarmVille, Words with Friends, CastleVille, Adventure World and Mafia Wars 2.

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