Zynga IPO Aims to Value Company at Lower-Than-Expected $10 Billion (Report)
NEW YORK - Zynga, the company behind such Facebook games as FarmVille, CityVille and Mafia Wars, is targeting a lower market valuation in its upcoming IPO than originally expected, Reuters reported.
Given a still-rocky stock market, it said the social gaming firm is looking for a valuation of up to $10 billion, Reuters said. Other reports said it could be as low as $7 billion.
When it originally filed for an IPO this summer, some predicted a $15 billion-$20 billion valuation. The company later mentioned a third-party estimate that put its value at $14.05 billion.
Based on Wednesday closing prices, video game giant Activision Blizzard had a market capitalization of $14.2 billion. Electronic Arts was worth $7.7 billion.
Zynga's IPO is expected to price its shares in mid-December at $8-$10 each, which would raise $900 million, Reuters reported.
The company is set to launch a so-called road show to market its IPO on Monday.