Bloomberg Report: Zynga Rises in Debut After Raising $1B in IPO
Zynga Inc., the largest maker of games for Facebook, was little changed in its first day of trading after raising $1 billion in an initial public offering that gave it a higher valuation than Electronic Arts Inc. (ERTS)
The shares, listed on the Nasdaq Stock Market under the symbol ZNGA, gained 1 cent to $10.01 at 11:36 a.m. New York time. The developer of games such as “CityVille,” “FarmVille” and “Mafia Wars” sold 100 million shares for $10 each, the top end of an $8.50 to $10 range, Zynga said in a statement.
Zynga gets more than 90 percent of its revenue from Palo Alto, California-based Facebook Inc., and faces increasing competition from Electronic Arts, which bolstered its own online services by purchasing PopCap Games this year. Nexon Co., a Tokyo-based maker of games for Facebook including “Zombie Misfits,” slumped 15 percent this week after raising $1.2 billion in an IPO, Japan’s biggest this year.
“You’re definitely going to see more competition” for Zynga as other companies expand their user bases, said Richard Greenfield, an analyst at BTIG LLC in New York. “On the other hand, I think it’s also going to bring more people into the overall social gaming space.” Continue Reading…
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