Five Reasons Why Zynga Shouldn't Go Public Yet
Zynga has a sky-high implied valuation, and it could wind up being worth much more upon going public. But now isn't the time for it. Here are five reasons why.
Zynga has a sky-high implied valuation, and it could wind up being worth much more upon going public. But now isn’t the time for it, as the attendant risks outweigh the hype surrounding the leading social gaming company.
Here are five reasons why Zynga needs to wait before going public.
1. Second Quarter Results Stink
Despite gains in previous quarters, the most recent quarter showed a 95 percent drop in earnings. That’s greater than anything one could blame on Facebook initiating its 30 percent revenue share from Credits.
2.
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