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Zynga, the San Francisco-based social gaming company, on Friday filed its S-1 with the Securities and Exchange Commission to raise a cool $1 billion. The IPO filing comes just one day later than many people expected — reports have been bubbling for weeks that Zynga was planning to file its S-1 sometime in June.
According to the filing, Morgan Stanley and Goldman Sachs will be the IPO’s lead bookrunners. Bank of America Merrill Lynch, Barclays Capital, J.P. Morgan and Allen & Company are also listed as underwriters for the IPO.
Zynga is looking to raise a maximum of $1 billion in the IPO.
As expected, the S-1 reveals that Zynga is solidly profitable and apparently growing. The company reported net income of $90.6 million on $597 million in net revenue for 2010. Zynga’s adjusted earnings before interest, taxes, debt and amortization (EBITDA) was $392.7 million. The company spent $114 million on sales and marketing over the course of last year, and CEO Mark Pincus collected a salary of $301,154.
The filing indicates that Zynga started off this year by maximizing its top-line growth, at the expense of its margin percentage. In the first three months of 2011, Zynga had $235 million in net revenue with $11 million in net income. As of March 31, 2011, Zynga had $995 million in cash and cash equivalents on its books.
Zynga managed to fit in a bit of whimsy with its cold hard financial facts. The filing reads: “By offering our shares to the public we hope to enable Zynga to invest more in play than any company in history. To accomplish this, we will continue to make big investments in servers, data centers and other infrastructure so players’ farms, cities, islands, airplanes, triple words and empires can be available on all their devices in an instant. We will also continue to fund the best teams around the world to build the most accessible, social and fun games.”