The money that the social games giant is looking to raise from shareholders as it goes public would value the company at $20 billion
Just moments ago, social games creator Zynga, which was founded only four years ago and took off on Facebook when it created FarmVille, filed its S-1 with the SEC. It plans to raise as much as $1 billion from potential shareholders, according to the filing. But TechCrunch has suggested that this number could just be a temporary placeholder and Reuters notes that the final target could be closer to $2 billion, which would value Zynga at $20 billion.
"The numbers of shares to be offered and the price range for the offering have not yet been determined," according to a press release that Zynga put out. "A portion of the shares will be issued and sold by Zynga, and a portion will be sold by certain stockholders of Zynga."
Regardless of the price or the number of shares, I suspect that they will all be snatched up as soon as possible by interested parties. For months, tech writers have been waiting for word that Zynga was ready to go public and, over the past few days, the anticipation has reached a fever pitch.
According to the filing with the SEC, Zynga has more than 230 million monthly active users in nearly 140 countries. Players of Zynga games spend about two billion minutes every day tending to their virtual crops, interacting with CityVille neighbors and more.