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Zynga to soon file $15-20 billion IPO - Report

CNBC reports FarmVille, Mafia Wars publisher will soon stage a massive public offering with the backing of Goldman Sachs.

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Rumors of an initial public offering by Zynga have been bouncing around for several weeks. However, now CNBC is reporting that the publisher of FarmVille will shortly file paperwork with the Securities and Exchange Commission for an IPO. Citing "people familiar with the matter," the financial site says that the San Francisco-based company may submit the forms as soon as Wednesday of this week in anticipation of a fall public offering.

Zynga's IPO is predicted to be between $15 billion and $20 billion.
Zynga's IPO is predicted to be between $15 billion and $20 billion.

Zynga is the creator of the wildly popular casual games FarmVille, CityVille, and Mafia Wars, which are played on the Facebook social network. CNBC expects the game company's public offering to be huge, in the range of $15 to 20 billion. Previously, the privately held company was valued at $10 billion--more than megapublisher Electronic Arts' market capitalization.

Zynga's IPO will come more than a month after the company hired away EA's COO John Schappert. The company is also negotiating with the city of San Francisco for an exemption to a payroll tax that affects payments gleaned from IPOs.

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24k_Solid_Gold

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hmm...

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wwlettsome

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Unless you're looking for a short term play I wouldn't run out and buy this stock. I agree with other posters who think the whole social media gaming thing is a fad that's going to run it's course over the next couple of years or so. I'd be interested to see once Zynga becomes public if they put out stats on active users for their games. It seems like each game they release is getting a shorter and shorter lifespan.

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Th4R

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Can't believe people are really paying for their games. Hearing that Zynga is valued more than top publishers offering great gaming experiences kinda saddens me. I hope people will realize how boring these games really are and start to support the good publishers offering great gaming experiences instead of these simple browser games.

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vishnuvanjara

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thats very good

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raptures330

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Goldman Sachs... that name will forever be tied to villainy and greed in my world. I curse thee: May you earn all the money you want... but have to spend it all on doctors and operations.

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mathfool

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Games like Farmville are a fad that will eventually die out. People get tired of clicking in endless repetition for basic, boring tasks. However, social network gaming is here to stay and very lucrative. The challenge is for talented developers to take advantage of the trend without dumbing down their games.

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hereatlast89

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This is just frustrating.I am not a developer, but still I can see something is just WRONG

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smoke_dog_4ever

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Goldman Sachs.... now where have I heard that name.... oh yeah, that was the banking system that f****** our economy so horribly by selling bad loans to citizens and making billions profit while those citizens lost billions. I think I'll be staying away from this like the plague.

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macca366

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Mmm A) I wouldn't want to support the kinds of games zynga makes. Although I do believe that there's room for GOOD social games that actually utilize the social networking space in a better way. And B) I wouldn't invest in something that's success is completely riding on the success of something else aka Facebook. If Facebook goes down or we move onto a different social networking space ala myspace > facebook, Zynga's success and value could drastically change in the blink of an eye

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Heshertonfist

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Thanks to Zynga, this is what games are going to become, addiction and repetition, thanks Zynga, thanks casual gamers.

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Daian

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It saddens me to know that such a company is making so so so much money while hard working,talented developers get fired or just try making a living with small but amazing games that go unnoticed.

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CorruptGamerGX

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That's nice. Still doesn't change the fact that they suck.

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okassar

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Ugh, the bigger Zynga is the worse off the world. Nothing good comes out of them. My Facebook is littered with updates about the amount of crops that insecure teenage girls managed to spend their afternoon farming and trying to shot off how cute they are in the process....maybe I should do some unfriending lol.

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Ronnie_Rim

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Zynga and its games are a joke. I hope this "social gaming" turns out to just be a fad that lasts a year or two more.

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params7

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@InflictedOwned Initial Public Offering..basically they are going public (in order to raise more money) and you can buy their stocks after that.

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InflictedOwned

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uhhh what's an IPO?

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