Friday, December 2, 2011

Zynga Inc plans to sell 100 million shares

Zynga Inc plans to sell 100 million shares ; Zynga Inc could raise $925 million (589 million pound), less than previously planned, in what is still one of the largest and most hotly anticipated Internet IPOs in years.

The Facebook game maker plans to sell 100 million shares, or 14.3 percent of the company, at $8.50 to $10 per share, according to a regulatory filing on Friday.

Zynga's debut follows hot on the heels of Groupon Inc and LinkedIn Corp's this year, which helped revive a market for first-time share sales that had sputtered in recent years.

Based on the midpoint of Zynga's price range, the company could raise $925 million. It had previously filed in July to raise up to $1 billion.

The IPO would value the 5-year-old company, which made its name on viral games such as "FarmVille," at between $7.6 billion and $8.9 billion, catapulting it to the top of the U.S. game industry.

Electronic Arts Inc has a market value of $7.73 billion, while Activision Blizzard Inc's is $14.21 billion.

While its games are free to play, Zynga makes money from selling virtual items -- such as tractors and weapons -- that players then use.

Mark Pincus, a serial entrepreneur before he founded Zynga, will hold a class of shares with 70 times more voting power than the regular stock that will be sold in the offering. For the latest updates on the stock market, visit Stock Market Today

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