Zynga Bites The Bullet, Finally Announces IPO

Zynga filed the appropriate paperwork with the SEC (Securities and Exchange Commission) to release Zynga stock into the public market with the aimed goal of fueling a one billion dollar profit cieling. As if Zynga didn't have enough money already, right?

Zynga estimates that the billion dollar goal they seek will be met in common stock, but that's below the value cited by certain individuals, and many think they could raise a great, GREAT deal more than that. As we all know, values on the stock market are determined by the perception of reality and not reality itself, so all of this positive press about Zynga's worth will no doubt drive the market. 

In his letter to the SEC, CEO Mark Pincus mentions some uplifting things about the importance of gaming, how it should be available to everyone everywhere, and the business philosophies he claim have made Zynga so successful. More importantly, he gives fair warning to investors (me) that only a fraction of their gaming audience actually pays for virtual goods in Zynga's games, and that becoming a public company is going to ultimately change absolutely nothing about how it's currently run, and that it will remain a developer that focuses more on long-term goals than quarterly profits.

The short of it is that if you've been saving up some money to buy something, buy Zynga stock instead. I say that as someone less than a ton of experience at trading stock, but I mean come on – common sense is common sense.

via Gamasutra