I received some important news from CNBC’s Kate Kelly about the potential IPO of the social gaming company behind Farmville called Zynga. Kelly reported details of a mass evaluation that may be associated with an offering. Zynga is planning to file its IPO registration documents with the Securities and Exchange Commission as early as tomorrow. The gamemaker is based in San Francisco and aims to secure between $1.5 billion and $2 billion dollars.
The company selected Morgan Stanley to lead its offering with Goldman Sachs in the secondary slot with several banks also involved. The offering should spark some interest in the social media world because the offering is implying a pretty lofty valuation of $15 billion to $20 billion.
Another outstanding factor is that as part of this IPO process Zynga has also held talks with banks about putting together a credit facility of at least $1 billion with a speculation of a little bit more than that, according to Kelly.
Of course, most of you who are familiar with Zynga’s connection to Facebook, where you can access the company’s games, and are probably wondering what the offering means for Facebook. In reverse, you might be wondering what Facebook means to Zynga’s offering. In this regards, the valuation process will be closely watched, of course. I wonder if Zynga has big plans unrelated to Facebook.