Zynga is all set to go public today in the largest initial public offering in the social games space to date. It’s undoubtedly one of the hottest IPOs of the year and various pundits are weighing in on both sides of the fence about whether or not to buy. Speculation has run rampant for a while about the price, which estimated the company’s IPO at $10B before the secondary market and official pricing targeted $7B instead.
This will be one of the major social media IPOs of 2011, in addition to stocks like Groupon and LinkedIn, which both went public this year. Both of these are quite volatile, as investors debate the long term prospects of the companies.
There will undoubtedly be a lot of action today on the stocks, and Zynga’s main message to potential investors has been that since they’ve launched a suite of games this year, they’re setting up to increase their overall user-base dramatically in the coming year. We’ll keep an eye on the performance of the stock today and post an update after the first day fracas is complete.
Our sister site, Inside Social Games takes a deeper look at today’s IPO, including details about Zynga’s revenues and share structure.