Farmville Maker Files for $1 Billion IPO

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News Posted: Fri, Jul 1 2011 4:33 PM
Zynga, the online gaming company responsible for Farmville and other Facebook games that once littered your social networking wall with dorky updates, is the latest tech company to file for a ridiculously large IPO. How large, you ask? Just in case you thought that's a typo in the title, it's not; Zynga really and truly expects to raise $1 billion. Don't be surprised if it does.

Citing people briefed on the matter, the New York Times is reporting that Zynga will likely offer up 10 percent of its shares at a valuation near or above $20 billion. Morgan Stanley will lead the offering, with Goldman Sachs, JPMorgan Chase, Bank of America Merill Lynch, Allen & Company, and Barclays Capital also participating.


In its filing with the SEC, Zynga claims to have 60 million daily active users in 166 countries. There are 232 million monthly active users contributing to 2 billion minutes of play per day and 38,000 virtual items being created every second. In just over four years, Zynga claims to have generated over $1.5 billion bookings. Zynga reported over $597 million in revenue in 2010, and more than $235 million so far in 2011. So what does it all mean?

It means that Zynga is about as close to printing money as you can get without actually owning a printing press, and don't be surprised to see investors bite. All Zynga's doing is following the lead of other social Web companies that recently went public, including LinkedIn, which doubled its IPO price on its first day of trading to become worth $9 billion, the most since Google went public.
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I have no doubt Zynga will raise the 1 billion dollars. Do you think the Zynga labs look anything like Dr. Evil's lab Stick out tongue

If you can get in on this IPO for a reasonable amount of money you should definitely do it.

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3vi1 replied on Fri, Jul 1 2011 9:43 PM

I would suggest staying as far away from these sleezebags as possible: http://techcrunch.com/2009/11/06/zynga-scamville-mark-pinkus-faceboo/

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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You can plant a lot of potatoes with 1 billion dolloars. :)

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rapid1 replied on Fri, Jul 1 2011 11:00 PM

That depends 3vi1 on if you want to make money on it or not. I personally am not looking at it though depending on how much it costs for the shares I might think of it if I had the money. Now do not get me wrong I know these guys are sleaze bags, and was really quite surprised when Apple/Steve Jobs actually brought them on stage at the conference last. I guess I should not though with Apple really.

What I am saying is what I am sure many large investors as well as many of these banks/firms are thinking to. I would think this is a real grab and drop security. Which is viable if you have real time investment tracking. Grab as much as you can and wait for payday. As soon as that price starts taking real hits drop 30-50%, then see if it recovers as I imagine you would make back 100% off of people who still don't know.

Think of it like buying AOL or Google at ground zero, but know it would not really be such as it will following that be a fast drop security. So drop half I would think as I imagine it will be a security that might wake back up at least one time. The way this stuff works now as soon as the price really drops people will be buying not knowing why or even caring thinking there going to get rich quick.

I don't really have any room to move right now personally like this, but I know exactly what all these investment firms are thinking.

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Completely agree. Profit is not bad in itself, but zynga does it by alienating a lot of new users. They are extremely dependent on facebook, and have run into some problems with them in recent months.

I am waiting for the initial spike after the IPO, at that point I am going to short it.

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Inspector replied on Fri, Jul 1 2011 11:42 PM

Wow really? lol. I don't even play farmville but i thought it was dieing as i see less and less notices on facebook about it :P. Well lets get those buyers in :D

Funny pic btw :P

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3vi1 replied on Sat, Jul 2 2011 1:14 AM

Remember this day kids: You'll be able to say you were there and cognizant when the second dot-com bubble was approaching. These services are all too interdependent on each other. If someone like EA was willing to go all-in with Google+, and they turn Facebook into the next MySpace or Friendster, Zynga tanks with them. No one succeeds on merit here, it's all dependent on who is first and willing to burn cash until the competition is dead.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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Inspector:

Wow really? lol. I don't even play farmville but i thought it was dieing as i see less and less notices on facebook about it :P. Well lets get those buyers in :D

Funny pic btw :P

The game notices go in there own section on Facebook now any only people who play those particular games see them.

@3vi They are definitely sleezebags, and always have been though their practices have become more legitimate from when they started the company. This IPO is definitely going to be a grab and drop

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AKwyn replied on Sat, Jul 2 2011 11:14 AM

Well... Thank god I never played around with Farmville my entire life, I always thought of that game as, shall we say... "gimmicky."

In any case, I predict this IPO will be short lived and the company will take a big nosedive after a few months or so. Even though they promised to remove the low-down elements, I still don't trust them one bit.

 

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rrplay replied on Sat, Jul 2 2011 12:12 PM

3vi1:

I would suggest staying as far away from these sleezebags as possible: http://techcrunch.com/2009/11/06/zynga-scamville-mark-pinkus-faceboo/

Well it was either this  venue or polish his public speaking for get rich pyramids or time share promos.
he's got the sleaze down but needs to get his hands out of his pockets .

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rapid1 replied on Sat, Jul 2 2011 2:50 PM

Oh I agree it will be a short lived IP, but I am sure some people will make some real money on it, and of course be gone forever.

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Jeez 3vi1, sounds like you have been watching too much Fox news! :P

Since when has merit or healthy competition had any place in business. Much less letting companies that are to big to fail, actually fail. Everyone should be suspicious of companies like this! I mean really they already went public! When exactly,....before the game was even made. Yes they can claim that they have generated that much interest, but what have they done lately. If they are already trying to sell out then that was their whole business plan from the beginning. Whoever buys them will just end up buying a start up that has to be reinvented either way. This reminds me of all the dems business plans, just like politicians,...lets make money from taking other peoples money,...then when they run out; sell the business and blame someone else:P

This is why they use diversionary tactics like taking the familiar and changing it around to make you believe that what you believe, is the same thing they tell you to believe, which is your idea all along and you are actually the smart one because you believe what they are telling you!?! That is why they take the normal commonly accepted acronym "WTF" And training kids to understand it as Winning The Future!!!! Then, when everyone figures out the plan, they will all be saying "WHAT THE F***" And it would have been your idea all along, by then... you are too busy blaming the people who are currently in charge.

That company has the socialist liberal agenda written all over it! Just look at their motto "Changing the World Through Games" , that is a Soros inspired money laundering scheme if I have ever seen one! I am just surprised this so called game company is not a subsidiary of Media matters:P If this company was making so much good product and anyone actually held on to it; it would probably fail within a few years. Because once you count all the chicken scratch you initially got to start the farm, doesn't mean you are going to be making more eggs or more chickens if there are no roosters in the barn!

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Manduh replied on Fri, Jul 8 2011 11:00 AM

I can't stand games that keep wanting money for your play. It is never ending with these companies. It's smart on the creator's end but stupid for the players to keep buying into this junk. The players just don't realize how much they are spending when they only pay a couple dollars at a time. It's almost as bad as some gambling habits.

As long as the creator's keep coming out with new stuff for their games it will be worth it for anybody wanting to be share holders.

I truly feel bad for all the people addicted to these games, all the horror stories you read in the paper or stories of people you know...kids getting neglected because their parents are stuck on the game 24/7, families spending their last few dollars on the games instead of buying food for their kids, it's disgusting really.

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