Zynga IPOs today

ZNGA IPO priced at $10 giving it a valuation of $7B. It is the largest tech IPO since Google. It opened at $11 and is now sinking. 

Zynga's not so quiet period

According to an article in the Thestreet.com, CEO, Mark Pincus has been talking up his company's ability to double the number of paid subscribers to potential investors at Warburg Pincus. This was not mentioned in its IPO prospectus.


What will the SEC think about such an event occurring during the mandatory IPO quiet period? Will there be any action?

Zynga employee relations to affect the company?

For those of you not in the know, Zynga is the maker of Farmville and Mafia Wars games on Facebook and as a standalone app. Earlier this year it applied to IPO. Roadshows should start soon. However publicity over its treatment of its employees are coming to light and not in a good way. 

Its reputation could've possibly affected potential acqusitions of Popcap, which it offered $950M in cash, and Angry Birds maker, Rovio, for $2.5B. Both turned down offers. 

see:

Zynga’s Tough Culture Risks a Talent Drain

Zynga to employees: Give back our stock or you'll be fired

Current implied valuations on Sharepost stand at $12.9B, as of Nov 29, 2011. 2011Q1 earnings hit $12M with full year revenues believed to be above $1B. 

see:

Zynga road show kicks off next week: sources

ZYNGA FILES FOR $1 BILLION IPO: It Did $235 Million In Revenue, Earned $12 Million In Q1

Games are for free, but die-hards called whales (named after their casino counterparts), will spend money to gain that edge over others. It was estimated that 1% of Zynga's players account for 25-50% of its revenue.  It's the new revenue model for the free video game business model. Businessweek highlighted a customer who spent $500 in Farmville and a competitor to Zynga claiming it had 200 people who spent more than $10,000 per year on their games. 

see:

Zynga’s Quest for Big-Spending Whales