The social gaming company behind such ‘hits’ as FarmVille and Mafia Wars has just filed for its Initial Public Offering (IPO) hoping to raise $1 billion.
Zynga has just filed its S-1 form with the Securities And Exchange Commission (SEC) in the US claiming it aims to raise $1 billion but experts believe this figure could only be a place holder and the real figure could be much higher.
According to the filing, Zynga has 60 million daily active users in 138 countries. 38,000 virtual items are created every second and game players spend two billion minutes-a-day on Zynga games. The company created $597 million in revenue in 2010, and posted revenue of $235 million in the first quarter of 2011.
Unlike some online companies who have floated in recent times, Zynga is already profitable and posted $90.6 million in net income in 2010. In Q1 of 2011, the social gaming giant reported $11.8 million in profit. Zynga has $995 million in cash on hand.
"The number of shares to be offered and the price range for the offering have not yet been determined," according to a press release from Zynga. "A portion of the shares will be issued and sold by Zynga, and a portion will be sold by certain stockholders of Zynga."
More as it happens….