Zynga shares drop below $10 IPO price december 16 2011

Zynga shares drop below $10 IPO price december 16 2011 : Zynga, the largest maker of games for Facebook, declined in its first day of trading after raising $1 billion in an initial public offering that gave it a greater valuation than rival Electronic Arts.

The shares, listed on the Nasdaq Stock Market under the symbol ZNGA, fell 5 percent to $9.50. The developer of games such as CityVille, FarmVille and Mafia Wars sold 100 million shares for $10 each, the top end of a proposed range.

Zynga gets more than 90 percent of its revenue from Palo Alto, Calif.-based Facebook and faces increasing competition for mobile devices from Electronic Arts, maker of The Sims and Scrabble. EA bolstered its own online services by purchasing PopCap Games this year.

Nexon, 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. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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