Zynga has hired Goldman Sacks to handle, what could be, one of the largest IPO’s in the history of Wall Street. The question of the day among potential investors & financial experts alike is whether or not Zynga is doing this just so they can make one get one final payday before they sell the company.
That seems to be the thinking of many unnamed sources close to this IPO. Many feel based on Mark Pincus’s history & time lines, with the companies he starts, that he is ready to move on. Also with all the major game issues, drop in players and revenues it is thought he is looking for a final payoff before the value is gone.
Zynga still remains the King of Social Gaming and many start up game companies have used Zynga as a model for their companies. While Zynga still has tremendous value in the market place, the shine with the company is dulling a bit. And now the potential underwriters are now looking closely at the numbers after some issues were brought to light to them that they say Zynga failed to disclose to them.
Zynga’s IPO will still be huge but it will not be nearly as big as the industry thinks, especially now that they are looking at the new information provided to them. They are now taking a very serious look at things and the valuation might now become much lower than what was first predicted.
It seems they were not told of the major drop in with the daily players and the potential revenue drop that comes along with it. An unnamed managing partner of Goldman Sachs has admitted that Zynga’s game Mafia Wars, while not the biggest game anymore, still does provide the most revenue out of all their games. He also goes on to say that Farmville is the game that is talked about most there and those numbers are dropping just as bad as Mafia Wars.
Some of the other financial industry people talked to about this IPO feel Pincus is just looking for his final payoff and feel the number on what this IPO will bring are really over inflated. They say the 10 billion valuation placed on this should really be around 2.5 to 4 billion instead based on all the data.
So it seems a Linkedin like payoff for Zynga is slowly disappearing according to the growing consensus but it will still be a huge IPO but will now force Wall street to look alot more closely to the all these new social gaming companies and even Facebook who is thinking of going public sometime next year.
Dont be surprised to see Zynga pull something out of their bag of tricks to help increase the value for the company as they are very good at that. I wouldn’t even be surprised to see them come out with a new game to pump up the numbers & help increase revenues thus increasing the valuation toward the potential Labor Day Weekend release of the IPO.
Zynga still makes great, addicting games and they truly do have value, even for a virtual game company. Even the film & music industry think so or they wouldn’t be doing all these promotions with them. Even with all the game issues and dropping player & revenue numbers.
So who are some of the potential buyers of Zynga if they do decide to sell after the IPO? I would look for Electronic Arts to be the front runner followed by Sony, as they have the deepest pockets and are building quite a big following with their games. Time will tell first we have to see what happens with the IPO.
Read the truth about Facebook, Zynga Games as well as other Video & Social Games With A No Holds Barred Approach. We Tell It Like Is Is.
We do our best to keep you properly informed with the actual information you need & not all the fluff that goes with it. Facebook & the Gaming companies don’t always tell you whats going on so I will gladly fight for you all and try and get you all the proper information you really need.
We really thank you all for all your support by following our Blog and our show. You All Rock !!!
“This site & podcast is not endorsed by or affiliated with Zynga Inc., any other Gaming company or Facebook Inc Trademarks are the property of their respective owners. Game content and materials Copyright Zynga Inc. , other Gaming Companies & Facebook Inc All rights reserved.”
Add Our Page to your circles on Google +
Advertise With Us Today
- 247,482 Followers
- REVIEW : Open Jam At Ka’tiki Hosted By Josephine’s Machine February 12, 2013REVIEW : Open Jam At Ka’tiki Hosted By Josephine’s Machine.WSNR
- REVIEW : Debut of Blues Jam at Clock Tower Sports Bar & Grill February 11, 2013REVIEW : Debut of Blues Jam at Clock Tower Sports Bar & Grill.WSNR
- Thoughts On Gun Control January 16, 2013I am gonna piss off alot of people with this so be prepared. I don’t not believe there should be gun control. I think better regulations and rules should be instituted but I don’t think guns need to be regulated. I believe guns should be taken out of the Walmart’s and K marts around the country […]WSNR
- REVIEW : Open Jam At Ka’tiki Hosted By Josephine’s Machine February 12, 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- April 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- Follow @jsweeney10
Start Your Own Podcast
Listen to The Facebook & Zynga Podcast LIVE Every Monday Night 6PM EST
The American Gangsters Store
102.5 The Bone Online
Listen Our Radio Stations
Top Posts & Pages
- The Show Is Up / The Hated Raven & Brazil Ruby Loot Fiasco
- It's Breast Cancer Awareness Month / Get Checked Out
- What To Do If Your Account Is Hacked
- Coming To Mafia Wars : Family / Clan Module
- Mafia Wars Is Dying And It Is All Zynga's Fault
- Zynga Closing The Game Pirates: Rule the Caribbean!
- >Zynga's Advice On How They Can Help To Get You Unbanned On Facebook
- Chicago Coming Soon / Added To Travel Bar
Search For Past Blogs
KryKey Personal Radio Stations Get Yours Today
Follow Us On Networked Blogs
Play Mafia Wars
Play Texas Hold Em Poker
Evil Ed’s The Walking Dead Podcast & Fan Page
Listen To Our Radio Station
Site infoFacebook & Zynga Blog
Blog at WordPress.com.