April 20, 2024

DealBook: Zynga Expected to Seek $10 Billion Valuation in I.P.O.

Mark Pincus, Zynga's chief executive.Jim Wilson/The New York TimesMark Pincus, Zynga’s chief executive.

Zynga, the fast-growing online game maker, plans to value itself at up to $10 billion in its initial public offering, according to two people briefed on the matter.

The company plans to file an amended prospectus on Friday with an estimated price range of $8 to $10 a share, these people said. At that range, Zynga would raise roughly $900 million. The company plans to sell up to 10 percent of its stock to public shareholders.

At $10 billion, Zynga is valuing itself lower than what some analysts had estimated.

Zynga declined to comment on Wednesday night. News of the Zynga offering’s terms was first reported by IFR Markets.

The individuals spoke on the condition of anonymity because the terms have not been made public.

Zynga, which is set to start its roadshow on Monday, is preparing to go public amid volatility in the I.P.O. market. This year, several technology offerings have performed well at first, but many have struggled to sustain their gains. Pandora, the online music service, has tumbled more than 36 percent since its I.P.O. in June. Meanwhile, Groupon, the popular daily deals site, has fallen sharply since its Nov. 4 offering, losing about $5 billion in market capitalization in the last few weeks.

In a move that may help investor confidence, some of Zynga’s largest shareholders will not sell shares in the offering, according to one person briefed on the matter. Zynga’s chief executive, Mark Pincus, and the venture capital firm Kleiner Perkins Caufield Byers are not planning to sell any shares in the I.P.O., this person said.

Article source: http://feeds.nytimes.com/click.phdo?i=ede7cb48cda9882aaa21263d2d671750