Zynga could file for IPO as early as this week


25 May 201168 Views

Zynga is reportedly about to file for its IPO, which could happen between this week and the next.

According to All Things Digital, the filing could happen either this week or next week, with Goldman Sachs among the lead bankers in this offering.

There is a huge investor demand for the social gaming company, which has made huge gains releasing highly successful titles such as FarmVille, CityVille and Mafia Wars through social networking site Facebook.

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Zynga has managed to monetise on these games through selling virtual goods and advertising, helping it experience annual revenues of US$1bn. Zynga’s most recent valuation hit US$10bn and the company is expected to price itself higher in this offering.

A number of internet companies have experienced successful IPOs recently, including LinkedIn, which managed to double its pre-IPO price with a current market valuation of US$9bn.

Other web-based companies have been aiming for an IPO with extremely high valuations. Facebook’s valuation has been predicted to hit US$100bn for its 2012 IPO and Groupon is planning a US$25bn IPO.