Social gaming behemoth Zynga could file their initial public offering (IPO) with the SEC by early next week.
Best known for their “Ville” line of games, namely CityVille, FarmVille and GagaVille, the company has raked in hundreds of millions in earnings by selling “in app” products on the Facebook platform.
The company is expected to reach an upwards valuation of $14.5 billion, far exceeding the nearly $10 billion that LinkedIn earned when they went public in May. Zynga unlike Groupon which lost $413 million in 2010 and other net loss internet company’s that go public is a profitable business with an ever evolving set of games added to their list of accomplishments, in fact the company currently brings in $17 million in cash flow every month.
Speaking to CNN Nitsan Hargil, director of research at GreenCrest Capital says of the company:
“This is one of the fastest growing companies in history, in any sector,” while he added, “Zynga is not your standard Internet bubble company. Not many four-year-old firms have great revenue, growth, and margins.”
Zynga also has plenty of room to grow, they currently gather 80% of their revenue from just 3% of their users. As the company continues to build out their product lines, add more interactivity and keep users coming back to their games there’s a good chance user engagement will continue to increase, thus leading to more interactivity and eventually more in-app purchases.
Zynga raised $500 million in early funding earlier this year and that number is expected to be far eclipsed when their IPO eventually goes public.