Game-Maker Zynga Unveils IPO Plans As Investors Grow Wary Of Tech

The maker of popular Facebook games including FarmVille and Mafia Wars says this morning in an SEC filing that it hopes to end up with nearly $890M from a public offering of 100M shares at an expected price of about $9.25 a share. The stock will trade at NASDAQ under the symbol ZNGA. The cash will be used for “general corporate purposes” which could include acquisitions. The company says it also plans to contribute a some of the net proceeds to charitable causes through its philanthropic initiative, Zynga.org. Today’s announcement follows its disclosure this past summer that it planned to go public — seizing on Wall Street’s infatuation with tech companies. Investors have become a little more skeptical about the category, though: For example, Pandora Media is down about 40% since it went public in June. LinkedIn is down 28% since May. And Groupon lost 27% of its market value after it hit the market early last month. Zynga investors also will have no power over the company. (more…)

This article was printed from https://deadline.com/2011/12/game-maker-zynga-unveils-ipo-plans-as-investors-grow-wary-of-tech-200330/