Zynga, the leading developer for Facebook and mobile games, will turn in the paperwork for their initial public offering on Wednesday, say multiple reports. The amount of money expected to change hands when the company's stock hits the market is staggering. According to The Wall Street Journal's sources, Zynga expects to raise up to $2 billion, a figure that puts the company's valuation between $15 and $20 billion.
CNBC's Kate Kelly, who broke the news of Zynga's intentions Tuesday afternoon, reports that Morgan Stanley and Goldman Sachs would underwrite the deal. "The expected Zynga IPO--which could come early this fall, on the heels of a midsummer SEC filing--marks another milestone in what is shaping up to be a euphoric period for Internet new issues," wrote Kelly. Indeed, the last Silicon Valley IPO of this size was Google, which raised $1.67 billion in 2004.
With LinkedIn's runaway success, analysts sound positive. Zynga is expected to bring in $1.5 billion in sales this week from popular games like FarmVille and Texas HoldEm Poker. "Of all the companies we’re looking at, it’s the one we’re most excited about because it’s a real company with real revenues,” analyst Nitsan Hargil told Bloomberg.