Zynga Adjusts Valuation from $10B to $7B -- Will the Market Buy It?

Zynga’s regulatory filing this morning shows that Zynga is preparing to offer 100 million shares at between $8.50 and $10.  This could possibly net them up to $1 Billion if all goes well, and would price their entire company’s full worth at around $7 Billion, which is far lower than the $20 Billion that was suggested when Zynga first hinted at an IPO.

The question is whether this valuation, which puts their trailing revenue multiple at around 7x on revenues of close to $1 Billion, is still expensive.

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Spring Special

Save 30% Off an ADWEEK Subscription Today!

View Your Options

Already a member? Sign in