Report: Facebook game publisher Zynga to file for IPO

The biggest Facebook-based game publisher Zynga is getting close to offering its stock to the public, if the reports on the Internet are correct. According to the AllThingsDigital web site, via unnamed sources, the company could file for an IPO with the US Securities and Exchange Commission as early as sometime later this week. The filing will be made by next week at the latest, according to the report. Zynga has been rumored to launch a public stock sale for months.

Launched in 2007, Zynga used the Facebook social networking web site as a way to distribute its games. Titles like Farmville, Mafia Wars and more have gained a massive player base thanks to the simple but addictive gameplay for its various titles.  microtransaction business model and its way of using Facebook to link players together to give in-game items and other features. Zynga currently has a whopping 250 million monthly active players on Facebook playing its titles. It said that in 2010 it generated $850 million in revenue with $400 million in profits. It has also greatly expanded in terms of workers. It currently has over 1,300 team members, many of which have come to the company from more traditional game publishers like Electronic Arts. It has also been on a buying spree in the past year, acquiring nine small game developers in the US and other parts of the world.

Zynga recently filed documents that suggested that it put the company's current value at $10 billion. However it's likely that number will go higher when the IPO actually launches.

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6 Comments

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ahhell said,
It amazes me that this company makes any money at all. More proof that are 250 million idiots on Facebook.

Just because the facebook ecosystem is profitable that makes the users idiots? -.-

ahhell said,
It amazes me that this company makes any money at all. More proof that are 250 million idiots on Facebook.

haha, idiots because facebook users like to play their games? They say the same thing about "idiots" that read tech forums Everyone has their own interests, just because the interests aren't YOUR interests doesn't make them idiots...

ahhell said,
It amazes me that this company makes any money at all. More proof that are 250 million idiots on Facebook.

It's easy enough. Millions of people paying real money to get in-game content to level up faster. How much do you think that is worth?
Imagine playing World of Warcraft and be able to use real-world money to buy better equipment and level up faster. How many people wouldn't be paying for that? How much money extra do you think is Blizzard going to make this way? Well, Zynga is doing it...

So apparently doing whatever you want with your money makes you an idiot now.

God forbid I spend any money gambling on the casino because that makes me an idiot and not someone having some fun with MY (not yours) money.