December 2, 2011
Social gaming firm Zynga on Friday filed IPO documents with the Securities & Exchange Commission (SEC) that places the company’s initial price per share between $8.50 and $10.
If that pricing is met the company will have raised between $850 million and $1.15 billion with a total company evaluation of $7 billion.
Those numbers are no small amount, however the company that has created such viral hits as FarmVille, CityVille, and MafiaWars believes they are worth nearly half the valuation of the world’s largest gaming company Activision Blizzard ($14.2 billion).
While $7 billion may seem like a high amount for a relatively new gaming company it should be noted that before pulling their original IPO due to fears of market volatility the company’s valuation was believed to be closer to $10 billion.
While some analysts have mixed feels about Zynga, it’s believed that by selling such a large percentage of the company’s worth during their IPO (14.3% to be exact) they may be able to lessen that volatility. read more
Tags: IPO, Social Gaming, Zynga
June 29, 2011
Social media game developer Zynga has become a behemoth of the online market. With titles that include FarmVille, CityVille, Words With Friends, Hanging with Friends and even a Lady Gaga inspired GagaVille the company currently attracts more than 214 million active monthly users (AMU’s).
With those types of numbers it shouldn’t surprise anyone today to learn that the company has officially filed for an Initial Public Offering (IPO) to the tune of $2 billion.
If the company is able to attract the full value they seek, which myself and numerous other analysts believe they will it would value the company at $20 billion.
The IPO could be an important barometer for IPOs in the social media space, since going public LinkedIn has watched their stock value decline from initial highs, while Chinese social site Renren which became the first social media network to go public has lost half of their value since May.
One advantage Zynga has over other social networks is their ability to grow from outside of one network, they could just as easily adapt their games for their own social gaming platform as place them on Facebook or even offer them through Twitter should that day arrive. The company also has a rabid fan base who install new games the moment they become available, while promoting those games to all of their friends through constant social network updates and requests to join in the fun, a fact that makes the company one of the first to fully take advantage of the viral nature found in social gaming. read more
Tags: IPO, Zynga, Zynga IPO
May 3, 2011
RenRen, China’s most trafficked social network will launch an IPO on the New York Stock Exchange on Wednesday, an IPO that is expected to raise $734.4 million and value the company at approximately $5 billion.
According to Mashable’s Jennifer Van Grove:
Renren is offering shares at $12 to $14, a 30% increase over its suggested offering of $9 to $11 per share just one week ago.
If the company reaches the $13 mid-point it will have a valuation of $5.1 billion, not bad for a company that has only 117 million users of which only 31 million actually access the site at least one-time per month.
RenRen is in many ways a Facebook clone, when Facebook announced a “Like” button, RenRen shortly followed suit, when Facebook announced Groups, RenRen again jumped onboard. The one big difference is that RenRen charges brands upwards of $90,000 to create a fan page, an offering made available by Facebook for free. read more
Tags: China Social Network, IPO, RenRen
January 28, 2011
LinkedIn is proving it pays to network. The company has filled its S-1 papers with the Security and Exchanges Comission for an initial public offering.
2010 was the year of IPOs, or at least guessing which Internet giants would hit Wallstreet first. Facebook, Demand Media and Skype were the biggest names tossed around the business networking site LinkedIn is starting 2011 as a publicly traded company.
But who owns what of LinkedIn? Previously unreleased details were revealed in its SEC filing as the company prepares to go public.
TechCrunch sifted through LinkedIn’s S-1’s papers and discovered founder/chairman Reid Hoffman along with his wife Michelle Yee own 19,066,032 shares or a 21.4% share of the company. Other notable shareholders include investors Sequoia Capital, Greylock Partners and Bessemer Venture Partners which own 18.9, 15.8 and 5.1 percent of shares respectively. Until the share prices are announced, we won’t know exactly how big the impact of say, 19 million shares is but in the mean time we can guesstimate.
Nicholas Carson at Business Insider did some math and came to this conclusion:
But we do know the company has ~$200 million annual revenues. That’s up 200% from a year ago, so a healthy 10X valuation is entirely called for. So figure it’s a $2 billion company, pre-IPO.
That would mean LinkedIn Reid Hoffman’s 21.4% stake is worth $430 million. CEO Jeff Weiner’s is worth $80 million. Sequoia’s stake – bought for $4.7 million – is worth $380 million, Greylock’s $320 million, Bessemer’s, $100 million.
Not bad for a company that makes networking with business professionals easier. If this is LinkedIn’s IPO, what will Facebook’s monstrous IPO look like?
Tags: Facebook, Initial Public Offering, investors, IPO, LinkedIn, money
LinkedIn has filed the required Securities and Exchange Commission papers necessary for the company to move forward with an initial public offering.
At this time it’s still unclear how many shares the company will offer or at what price those shares will be offered at.
In 2009 the business-centric social networking site generated $120 million in revenue, with $161 million coming in through the first nine months of 2010.Those first nine months in 2010 generated $10 million in profit for the company.
Interestingly, in their filing Facebook, Twitter, Google and Microsoft are named as competitors with LinkedIn noting: read more
Tags: Initial Public Offering, IPO, LinkedIn, Social Business Networking
August 9, 2010
Skype was recently sold by eBay to a group of private investors and now those investors are looking to raise as much as $100 million with an initial public offering (IPO) which has been filed with the SEC.
It’s hard to tell what the price of shares will be for Skype stock, however some analysts have priced the company around the $2.75 billion market valuation point.
The company was purchased from eBay by a group of investors in September, those investors include: Silver Lake, Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board. read more
Tags: ebay, IPO, Skype, Tech IPO