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Zynga To Announce IPO, May Rope In Goldman Sachs

Social gaming giant Zynga, which is behind the popular Farmville and Cityville will be announcing its initial public offering this week.

Sources have told (opens in new tab) All Things Digital that the Mafia Wars maker could file for the IPO with the US Securities and Exchange Commission as early as this week or next week at the latest.

Zynga, which was valued at $10 billion in a recent round of funding, has long been rumoured to be mulling over an IPO. Sources inform that the company is roping in Goldman Sachs to help with the IPO.

Investors have taken a liking to fast growing internet companies launching their IPO. LinkedIn was the first such internet company to do so. The professional social network’s IPO values the company at $9 billion, almost double than what was before it went public.

Zynga has had phenomenal success by offering social games on Facebook. The company claims that it has more than 250 million active users every month, with its popular Cityville gaming being played by 90 million users every month.

The company generated a revenue of $850 million last year, with $400 million as profit. Zynga has now become the second largest game publisher in the US behind Activision.

Ravi Mandalia
Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.