July 22, 2024

DealBook: Zynga Picks Underwriters for I.P.O.

FarmVille, Zynga’s online game.FarmVille, Zynga’s online game.

Zynga, the popular online video game maker, is inching closer to another hotly anticipated initial public offering in the technology sector.

The company has picked a handful of banks to underwrite its impending I.P.O., a group led by Morgan Stanley, people briefed on the matter told DealBook on Tuesday. Other banks in the group include Goldman Sachs, Barclays Capital and JPMorgan Chase, said these people, who spoke on condition of anonymity.

CNBC, which reported news of the underwriters’ selection earlier on Tuesday, said that Zynga might file for its I.P.O. as soon as Wednesday. Some of the banks may also offer Zynga a loan of at least $1 billion, the network reported.

Zynga is expected to offer about 10 percent of its shares at a valuation near $20 billion or more, according to two people briefed on the matter. A small offering, of 10 percent or less, would follow similar technology I.P.O.’s this year. Both LinkedIn and Pandora, for instance, offered about 9 percent of their shares in their debuts.

Representatives for Zynga and the banks declined to comment.

Article source: http://feeds.nytimes.com/click.phdo?i=04252f5506d860fbec4fc2f69fd24b96

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