SI
SI
discoversearch

 Technology Stocks | Zynga, Inc.


Previous 10 | Next 10 
To: stockman_scott who wrote (72)12/15/2011 5:25:22 PM
From: Glenn Petersen
1 Recommendation   of 322
 
ZYNGA gets priced at the high end of its range:

Zynga Raise $1 Billion in I.P.O.

By EVELYN M. RUSLI

DealBook
New York Times
December 15, 2011, 5:12 pm

The virtual cow is the cash cow of Wall Street.

On Thursday, Zynga, the creator of online farms, poker tables, and kingdoms, priced its initial public offering at $10 a share, at the top end of its expected range. The offering, which raised $1 billion, values the online gaming company at $7 billion.

The highly anticipated I.P.O. — the largest for a U.S. Internet company since Google — marks a critical milestone for the larger social gaming industry, solidifying the legitimacy of a business model once mocked by investors. At $7 billion, Zynga rivals traditional gaming companies like Electronic Arts, which still makes the bulk of their money from shrink wrapped games sold at brick-and-mortar stores.

“This is a revolution,” said Lou Kerner an analyst at the brokerage firm Liquidnet, who has followed Zynga for years. “Social is revolutionizing the gaming industry and it’s really the early days of a brand new medium.”

dealbook.nytimes.com 

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (2)

To: Glenn Petersen who wrote (101)12/15/2011 6:40:00 PM
From: stockman_scott
1 Recommendation   of 322
 
Zynga Looks To Be Home Run In Venture Game

http://blogs.wsj.com/venturecapital/2011/12/15/zynga-looks-to-be-home-run-in-venture-game/?mod=google_news_blog

December 15, 2011, 5:24 PM ET

By Russ Garland

Foundry Group is a small venture firm in Boulder, Colo., that raised a $225 million debut fund in 2007 and invested $1.6 million of it in a gaming company called Zynga.

Zynga plans to go public tomorrow at $10 per share, the upper end of its pricing range, and if it at least holds that value until Foundry can exit, that investment will return $368 million to the firm and its limited partners.

That’s a grand slam in the venture business.

The story is similar for Zynga’s other early investors, Avalon Ventures and Union Square Ventures. The company’s later investors, who include Kleiner Perkins Caufield & Byers and Institutional Venture Partners also stand to make a bundle. Kleiner Perkins, the largest shareholder after Chief Executive Mark Pincus, will own an 11.6% stake after the IPO worth about $652 million at $10 a share. The firm, which has far more capital under management than Zynga’s early investors, put a total of $35.4 million into the company.

Even Google stands to make out. Like all Zynga’s venture investors save Kleiner Perkins, Google plans to sell shares tomorrow and could pocket nearly $17 million, leaving it with a 3.8% stake in the company worth around $216 million.

Foundry Group will walk away with $25 million if it sells all the shares it is offering as part of the IPO. Avalon stands to make about the same and Union Square could take home about $22 million. Avalon’s remaining stake would be worth about $322 million; Union Square’s, $285 million; and Foundry’s, $321 million.

Those three venture firms, along with Kleiner Perkins and IVP, have already taken some money off the table through share repurchases by Zynga earlier this year. IVP, which put $12.6 million into Zynga, could score nearly $25 million in the offering, leaving it with a stake worth $318 million.

And what about Pincus? He’s not selling any stock in the IPO, having already reaped $109.5 million in a stock buyback last March. After the IPO, his stake in the company, including his Class C shares, which have super voting rights, will be worth a cool $1.1 billion.

Of course if the stock performs well, all these numbers will rise. When Zynga filed to go public in July, it was hoping for a value of $20 billion, more than twice what it’s currently worth.

Share Recommend | Keep | Reply | Mark as Last Read

To: Glenn Petersen who wrote (101)12/15/2011 7:12:36 PM
From: stockman_scott
1 Recommendation   of 322
 
Zynga's big IPO winners

finance.fortune.cnn.com 

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (2)


To: stockman_scott who wrote (103)12/16/2011 12:57:26 PM
From: Glenn Petersen
   of 322
 
ZNGA's underwhelming debut:

Zynga’s Modest Debut

By EVELYN M. RUSLI
DealBook
New York Times
December 16, 2011, 11:52 am

Zynga’s debut lacked the usual New York fanfare. Instead of photo shoots at Nasdaq’s Times Square locale, Mark Pincus, the founder of the gaming company, rang a makeshift opening bell inside Zynga’s headquarters in San Francisco.

The debut also lacked the usual pop associated with highly anticipated Internet offerings. On Friday, Zynga’s shares rose a modest 10 percent at the open, to $11, before dipping below its offering price briefly. The stock is currently trading at $10.

Zynga’s early trading reflects the broader market for initial public offerings. Newly public technology stocks have been buffeted by macroeconomic turmoil and jittery investors, who remain skeptical about the business models. Several Internet companies have stumbled below their offering prices. Pandora remains more than a third below its price. Nexon, the Zynga of Asia, fell on its first day of trading earlier this week.

According to Renaissance Capital, an I.P.O. advisory firm, the technology sector has recorded 42 I.P.O.’s, worth $8.5 billion, year-to-date. The group has averaged a 20.4 percent gain for the first day of trading, but many have struggled to stay above water. The group has fallen about 15 percent on average since the beginning of the year.

In the coming months, Zynga will be a critical test for the fragile market. Traders are also closely watching the stock to get a sense of how Facebook will fare, when it goes public next year. The social network giant is widely expected to go public in the second quarter of 2012, at a market value more than $100 billion.

Financially, Zynga is on better footing than many of its peers. The company recorded earnings of $30.7 million for the first nine months of this year, on revenue of $828.9 million. It is also the largest gaming company on Facebook, with some 222 million monthly users.

But Zynga also has its fair share of skeptics. User growth has slowed in recent quarters, while marketing expenses remain high. Zynga spent 122 million on marketing and sales for the first nine months of the year, more than all of 2010.

Still, Mr. Pincus, who rang the bell with his wife, Ali Pincus, at his side, had reason to celebrate. At the current price, his 16 percent stake is worth $1.1 billion.

dealbook.nytimes.com 

Share Recommend | Keep | Reply | Mark as Last Read

To: tradebaron who wrote (100)12/16/2011 7:19:55 PM
From: Glenn Petersen
   of 322
 
That $7 target may turn out to be a good call.

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (2)

To: Glenn Petersen who wrote (105)12/16/2011 8:07:42 PM
From: stockman_scott
1 Recommendation   of 322
 
Zynga falters in debut & sheds doubt on IPO market

finance.yahoo.com 

Share Recommend | Keep | Reply | Mark as Last Read


To: Glenn Petersen who wrote (105)12/20/2011 6:09:38 PM
From: stockman_scott
1 Recommendation   of 322
 
WHOOPS: Morgan Stanley Blew Up Its Own Mutual Fund Investors In Zynga

businessinsider.com 

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (29)

To: stockman_scott who wrote (107)12/21/2011 10:21:12 AM
From: Glenn Petersen
1 Recommendation   of 322
 
Based on what has happened with Zynga, I think that the late-stage Facebook investors are also going to get burned.

Share Recommend | Keep | Reply | Mark as Last Read

From: Master Marketer1/2/2012 8:16:42 PM
   of 322
 
Want to do some internship for marketing, and availability is wide open. Contact info. is tmkarlen@mail.com, thank you very much,
Timothy Karlen

Share Recommend | Keep | Reply | Mark as Last Read


To: stockman_scott who wrote (107)1/5/2012 6:03:06 PM
From: Glenn Petersen
1 Recommendation   of 322
 
Excellent article:

Real Connections in Game Land

By SETH SCHIESEL
New York Times
January 4, 2011

I used to talk to Natasha on the phone.

You remember the telephone. When I first met Natasha about five years ago in my neighborhood — the south side of Williamsburg, Brooklyn — we would, you know, call each other when we wanted to meet up for lunch or a drink.

As do many friends over time, Natasha and I eventually found ourselves texting each other. But now that seems like a long time ago. That’s because Natasha doesn’t call or write anymore. I’m even hard-pressed to find her on Facebook.

We’re still good friends, but there is only one reliable way to communicate with her these days: Words With Friends, the popular electronic Scrabble knockoff. You see, Natasha disconnected her cellphone service, but she still uses her iPhone on Wi-Fi. She always has at least a dozen Words games going, and she now uses the chat window in each game as her primary real-time link with the world.

Natasha might take a couple of days to respond to an e-mail or Facebook message, but make a new move in a Words game and she’s on it in minutes. When visitors from out of town want to let her know they’re around, they tell her via Words. After she reconnected recently with an old classmate, they flirted through Words for six months before meeting in person. (I hear it went well.)

When Natasha learned that I wrote about video games, she thought that was exotic. And it was, five years ago. Now an electronic game is a basic staple of her everyday existence.

This is not so unusual. Almost every adult in the industrialized world (and many in developing economies) now uses some sort of electronic device daily, and all of those devices offer some sort of game. As games become ubiquitous, they are not only content but also context, context for mundane human relationships among people who don’t even consider themselves gamers.

Just ask Shawna, to her chagrin.

Shawna is another neighborhood friend. Like Natasha, she is independently employed, works mostly from home and is around 30 years old. Like Natasha, Shawna is Internet literate but has barely the faintest interest in Xboxes, PlayStations or anything else to do with traditional video games. Also like Natasha, Shawna maintains some of her closest relationships through a video game.

The big difference is that Shawna has been pulled into game land against her will. The culprit is her own mother, a 50-year-old labor-and-delivery nurse in South Carolina. “My mother is obsessed with YoVille,” Shawna said the other day, her tongue not entirely planted in cheek.

Like many Facebook games YoVille is about letting players decorate a house, an apartment, a plantation, a town or nearly any other virtual environment. In order to keep making your virtual dollhouse larger and more attractive, you usually have to start spending real money or continue recruiting more and more friends. Logging in six times a day also helps. It is a formula that makes for insipid games but a reasonable business model. (Like Words With Friends, YoVille is owned by Zynga, the Internet game company that recently went public.)

Early home-decoration games like the Sims found their most fervent players among school-age girls, but the core audience for these kinds of Facebook games is middle-aged women like Shawna’s mom. When Shawna tried to quit the game, that didn’t go over well at home.

“She actually started complaining to me that my apartment in YoVille was a mess and how I needed to log in more and decorate it,” Shawna said. “I thought she was kidding, but she wasn’t. It’s like she was complaining about my real apartment.”

Shawna added that her mother must be at work around 6 a.m., and that she gets up early to play YoVille.

“Now she’s got my 10-year-old nephew into it,” she said. “I think it’s kind of cute, but the problem is she started sending me serious messages about family business in YoVille, and I was missing them because I didn’t play the game as much as she does.”

What sort of serious messages?

“You know, basic things like the fact that my brother was getting married,” Shawna said. “You think I’m kidding, but I’m not.”

When we play a game with or against someone, we get something out of it that we don’t find on a message board or in a bare chat room, e-mail, text or even a phone call: a sense that we are actually doing something together.

Sure, even in real life you sometimes just want to sit and talk. But no matter how artificial the activity itself may be, that warm feeling of participating in something together with someone you care about is genuine. The substance of the game is almost irrelevant; when you know that another person is logging in every few hours or days to make a move, that connection is surprisingly intimate.

Of course, as anyone who has ever played Monopoly or Risk with close family members can attest, competitive games with those close to you don’t always end well. That’s why people in the best relationships seem to play collaboratively.

You could ask a third friend of mine all about that, but she doesn’t talk about it much. It’s too painful. (None of my friends wanted to be publicly attached to these stories for the rest of their lives.)

Unlike Natasha and Shawna, my third friend is a real gamer. Her preferred console is the PlayStation 3, and she always played games with her boyfriends, curling up for hours and sharing the controller as they explored various virtual adventures.

Playing video games was one of the main hobbies she shared with her fiancé right until he died suddenly one month before their planned wedding last fall.

Many weeks after her tragedy, she asked me (via text) if I could recommend any “game therapy.” She needed something to take her mind off the hell she was in, even for a little while.

One game her fiancé had bought was the sleeper zombie hit Dead Island, which I had wanted to play anyway. My friend was camped out in mourning at her mother’s house (with her PS3), so we started to play together remotely.

Dead Island is great, but we didn’t get far before she told me she needed something stronger — an even more potent distraction from the real world. What else could I do but turn her on to World of Warcraft?

World of Warcraft is famously immersive, and within a week my friend was fully engaged: asking detailed questions about spells and weighing the pros and cons of different abilities. Unsurprisingly, perhaps, she chose to play as a night elf druid that specializes in healing.

To play with her I made a human paladin that specializes in protection.

When we type back and forth in the game, it’s mostly about how to defeat the next monster or about the dungeon we’re about to clear out. For her time in the game is time away from her grief. So I keep it light and try to keep her attention focused on the orcs and skeletons and ogres and demons we’re slaying.

I can’t quite do that on the phone.

nytimes.com 

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (1)
Previous 10 | Next 10 

Copyright © 1995-2014 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.