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View Full Version : Zynga IPO values company as high as $9.04 billion


RobertoOrtiz
12-02-2011, 10:10 PM
Quote:
"
(Reuters)- Zynga Inc is seeking a more modest valuation than Wall Street expected for its initial public offering, hoping to attract investors after a series of Internet stocks fell below their IPO price in recent weeks.

The social games maker, known for Facebook games like "FarmVille" and "Mafia Wars," plans to sell 100 million new shares between $8.50 and $10 each, which will raise $925 million based on the midpoint of the range, according to a regulatory filing on Friday.

The deal values Zynga at as much as $9.04 billion, about a third less than the $14.05 billion valuation that the company cited in a filing two weeks ago."



Zynga IPO values company as high as $9.04 billion (http://www.yahoo.com/_ylt=AkHWd5bcRzD8oqg71GO4l6ibvZx4;_ylu=X3oDMTRyZTZxaTFjBGEDMTExMjAyIG5ld3MgenluZ2EgdARjY29kZQNwemJ1YWxsY2FoNQRjcG9zAzEwBGcDaWQtNzg3NjYwBGludGwDdXMEbWNvZGUDcHpidWFsbGNhaDUEbXBvcwMyBHBrZ3QDMgRwa2d2AzIEcG9zAzEEc2VjA3RkLW53cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzY1ODM4/SIG=12po3d2mh/EXP=1322953710/**http%3A//news.yahoo.com/zynga-plans-1-billion-ipo-report-023943285.html)

PerryDS
12-02-2011, 10:25 PM
Question I have to ask ... does society in general have so much time on it's hands to justify playing mobile on online mini games that it would make such a company have the value it has .... come on ... farmville????

DanielWray
12-02-2011, 11:26 PM
It seems it's all the rage nowadays to value a company at a ridiculous figure.

plunq
12-03-2011, 12:12 AM
Read this article about Zynga last month:

"Report: Zynga Demands Stock Back From Employees, Threatens to Fire Them

The man behind monster hits FarmVille, Mafia Wars and CityVille is scrambling to reclaim some of the stock options he handed out to long-time employees, the Wall Street Journal reports."

http://kotaku.com/5858425/report-zynga-demands-stock-back-from-employees-threatens-to-fire-them
http://online.wsj.com/article/SB10001424052970204621904577018373223480802.html

SheepFactory
12-03-2011, 12:51 AM
It must be nice getting rich by ripping off a free flash game.

CHRiTTeR
12-03-2011, 12:56 AM
It must be nice getting rich by ripping off...

is there any other way to get rich? :D

DanielWray
12-03-2011, 01:11 AM
The Journal says that the executives worries that they were going to create a "Google Chef" situation, referencing the search engine chefs who fell into $20 million worth of stock after that company went public.

Horrible, greedy *******. That's all there is to say about the executive(s) who decided this was a bad thing.

So what if long-term employee's, who helped get the company where it is today get a large reward due to the companies success.

RobertoOrtiz
12-04-2011, 05:35 AM
The man behind monster hits FarmVille, Mafia Wars and CityVille is scrambling to reclaim some of the stock options he handed out to long-time employees, the Wall Street Journal reports (http://online.wsj.com/article/SB10001424052970204621904577018373223480802.html). Citing several employees, the Wall Street Journal article says Zynga CEO Mark Pincus and a cadre of executives decided last year that they needed to get some of their stock options back from employees. The story says that the company approached some employees and gave them two options: Return the options or get fired.
http://kotaku.com/5858425/report-zynga-demands-stock-back-from-employees-threatens-to-fire-them


Rob Note:

Mod hat off: All I got to say about this:
Arrogant bastards.

Lunatique
12-04-2011, 05:51 AM
There's more than meets the eye, guys:

At Zynga, however, Mark Pincus apparently likes to do things a bit differently. Rather than simply firing under-performing employees and handing unvested options over to the replacement, Pincus often likes to find another position within Zynga where the employee might still be able to contribute. But because that new position was often lower down the corporate totem poll, Pincus basically wanted to cut the person's compensation by reducing his or her number of unvested options (vested options were not touched).

JanosHunyadi
12-04-2011, 06:24 AM
There's more than meets the eye, guys:

I was surprised someone would post this. The NYT and WSJ articles are written by 'journalists' who have their own axes to grind, not to mention the NYT citing an exec at EAGames, friends with a VC whose funding of Zynga was turned down...coincidence? I think not!

Also, Zynga can't defend itself, because it's in the legal IPO "quiet stage."

CLONEOPS
12-04-2011, 09:41 AM
Question I have to ask ... does society in general have so much time on it's hands to justify playing mobile on online mini games that it would make such a company have the value it has .... come on ... farmville????

yes. your average brain is looking for something to do,if it finds something to do it wishes to be fed as a reward..how do you sell feed to a brain if you cannot hand brain brightly-colored flavored shiny candy directly.. you do it remotely...you do it electro-chemically..its the new cigarette,potentially these kinds of games combined have profits in the trillions if you are talking about a span of a portion of a lifetime and includes generations.
sell small stuff,sell it cheap..do it a billion times over.
loop endlessly. cha-ching!
It comes down to time slices..in effect those idle times,Companies are very keen
smart and savvy as to when and how,and who, and what some people want to do with those idle waking moments.Putting the ability to instantly motivate a psychologically small transaction in the palm of your hand is like pokeing a tiny needle hole in an immense bag of sand.....aaand someone has figured out how to collect.
I was once told by a lady that said she only got rich when people
started using debit cards to pay..because they never see their money actually being taken from them..they generally never visualize it leaving their possession.

The ones collecting at the top of the pyramid usually end up owning very large and much.. much.. more expensive sock collections than us.:)

Lomax
12-04-2011, 11:32 AM
Except for the fact that Zynga has some products to sell, I'm picturing a Groupon scenario - the owners set an insanely inflated price, so they'll at least be laughing to the bank. The initial investors buy as much as they can, riding the wave of hype that practically guarantees the price will be even higher once the stock is open to the rest of us. Then a day or two later, they cash out, also laughing to the bank as the stock drops below the initial price...

refract
12-07-2011, 10:21 PM
www.escapistmagazine.com/news/view/96024-Zynga-CEO-Admits-to-Being-a-Scammer

http://techcrunch.com/2009/11/06/zynga-scamville-mark-pinkus-faceboo/

Guess being a scam artist pays off.

RobertoOrtiz
12-16-2011, 10:24 PM
UPDATE:


For Zynga CEO, Cash Came Early

"
For many technology entrepreneurs, an initial public offering is a chance to make their paper millions real. Zynga Inc. chief Mark Pincus is part of a growing group of start-up founders who beat the IPO to the punch.

Mr. Pincus, 45 years old, took more than $109 million off the table when he sold a small portion of his stake back to the social games company in March, according to regulatory filings.

Mr. Pincus even made a bigger profit than he would have in Zynga's IPO. The San Francisco-based company spent nearly $14 a share to buy back Mr. Pincus's stock, compared with an IPO price of $10 a share that values Zynga at about $8.9 billion, including stock options."
http://finance.yahoo.com/news/for-zynga-ceo--cash-came-early.html

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