Zynga To Raise $1 Billion From IPO

Mark Pincus, Zynga CEO

Facebook games maker Zynga plans to raise $1 billion (£630 million) in its initial public offering, valuing the fledgling internet firm at $7 billion.

The company behind popular Facebook games Farmville and Mafia Wars said in a regulatory filing on Friday that it intends to sell 115 million shares – 14 percent of its common stock – at up to $10 each.

The $7bn price tag will make Zynga the third-largest US gaming firm by market cap, behind World of Warcraft maker Activision (NSDQ: ATVI) Blizzard and Electronic Arts (NSDQ: ERTS). Activision Blizzard was valued at $14.19 billion and Electronic Arts was valued at $7.69 billion when the stock markets closed on Thursday.

Zynga said it has 54 million active users in 175 countries across the world, many of whom play its range of Facebook games including CastleVille, Empires and Allies and Zynga Poker.

Mark Pincus, the Zynga founder and chief executive, will control 36.2 percent of voting stock after the flotation.

This article originally appeared in MediaGuardian.

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