What Does Life After IPO Look Like For Zynga?

With shares dipping 5%, Zynga’s $1 billion initial public offering Friday shows that there’s still a long way to go for the company that legitimized free-to-play social games in Western markets.

Following South Korea’s Nexon, Zynga is the second initial public offering from a gaming company in the last week that has seen its shares dip below the initial price. Unlike coupon site Groupon, which is still trading above its offer price, both Zynga and Nexon have comparable publicly-traded companies like video game publishers Activision, EA, and Ubisoft, against which revenue and profit multiples can be benchmarked.

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