Zynga’s upcoming IPO reviewed by the numbers
15 Dec
Quick post on a subject I’m following quite intently; Zynga’s IPO. While I already wrote that I think the social gaming companies are overvalued based on my experience in the gaming market; now some Wall Street analysts sheds his light on it.
A similar social gaming company, Nexon, went public on the Tokyo Stock Exchange with a pre-trading market capitalization of $7 billion, although it closed the day down about 3 percent off its IPO price. The Asian online gaming giant raised $1.2 billion and it made net income of $260.1 million, up 14 percent, on revenue of $853.5 million, up 26.5 percent, for the nine months ended Sept. 30. By contrast, Zynga made a paltry $30.7 million on revenue of $828.9 million for the nine months ended Sept. 30.



