Zynga IPO Could Face Delay Amid Stock Market Woes
The social gaming giant and its investment banks will evaluate market conditions after Labor Day and could push back a market debut that they had hoped would happen in September.
NEW YORK – Amid the recent wild stock market swings, social gaming powerhouse Zynga, the company behind such Facebook games as FarmVille, CityVille and Mafia Wars, may take its time with its stock market debut.
The New York Post reported that Zynga, which had filed for an IPO in June, was looking to go public in September, but could now delay the move until November.
The paper said Zynga and its advisers hope to have more clarity on market conditions and timing of the IPO, set to raise up to $1 billion, after Labor Day.
The year has seen a slew of hot tech IPOs, but amid this month’s market declines and swings, several companies have cancelled their IPO plans, while more than a dozen have delayed their market debut.
Morgan Stanley, the investment bank leading the Zynga IPO, declined to comment. Zynga is restricted from making public comments ahead of its public offering by regulations, the Post noted.
Zynga recently restated some of its reported financials after changing the way it accounts for users following discussions with the Securities and Exchange Commission.