Ipo Market: Zynga falters in debut
Online games developer Zynga Inc scored badly as it went public, dashing hopes for the year’s hottest tech IPO
NEW YORK/SAN FRANCISCO:
Online games developer Zynga Inc scored badly as it went public on Friday, dashing hopes for the year’s hottest tech IPO, as investors frowned on its over-reliance on Facebook, dimming growth prospects, and outsized control by CEO Mark Pincus. Zynga’s stock fell 5 percent below its $10 initial public offering price to close at $9.50 on Nasdaq on Friday, dealing losses to IPO buyers used to racking up gains on a stock’s first day of trading. Investors had eagerly awaited the IPO as a way to get a slice of Facebook’s growth before the leading social networking website goes public, possibly in 2012. Zynga makes money on Facebook by selling virtual items such as jewelry and poker chips in its games such as “FarmVille” and “CityVille.” At least one analyst said on Friday that some investors may have been turned off by Chief Executive Mark Pincus’ large voting stake and control over the company.
Published in The Express Tribune, December 18th, 2011.
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