Zynga Officially Values Itself at $1 Billion

This article is over 12 years old and may contain outdated information

The social gaming company set the terms for the sale of its stock pretty high on the Wowza scale.

Founded in 2007 by Mark Pincus, Zynga has consistently turned a profit which is unusual for such a young company. That may be the reason the IPO – Initial Public Offering of stock – is valued so high. Today, Zynga announced it will sell 100,000,000 shares on the Nasdaq tech exchange starting on December 15th at an initial price between $8.50 and $10 per share.

Here’s some quick math. If 100 million shares are sold at $8.50 a pop, that’s a dirty $850,000,000 to make a few more -Ville games. But if the shares are sold on the higher end of the scale and the value grows as soon as those shares become available, Zynga could possibly make $1 billion or more in one freaking day.

That is, if people actually think this whole social gaming thing is gonna stick around. Now, if you’ll excuse me, I have to go home and see if my mother-in-law has checked her cows in FarmVille recently.

Source: Wall Street Journal

Recommended Videos

The Escapist is supported by our audience. When you purchase through links on our site, we may earn a small affiliate commission. Learn more about our Affiliate Policy