Gaming company Zynga is pricing its initial public offering at $8.50 to $10 per share for 100 million shares, and could raise the company up to $1 billion, according to its filings with the Securities and Exchange Commission.
Citing a “person familiar with the plans,” Bloomberg Businessweek reported that Zynga had initially been planning a much larger initial public offering, but scaled back after seeing Groupon and Pandora fall after their market debuts.
Even with plans that were reportedly scaled-back, however, the company would have a valuation of between $7.7 billion and $9 billion. Reuters reported that estimate would make it the most valuable game company in the country, ahead of Electronic Arts’ $7.8 billion market cap, though still behind Activision Blizzard’s market value ot $14.2 billion.
Zynga joins tech companies such as Groupon, Pandora and LinkedIn in going public, but, as Wired’s Beth Carter points out, is unique because it’s actually turning a profit. In its latest filing, the company said it made $30.7 million for the first nine months of 2011, on revenue of $828.9 million.
The company has been expanding its line of games and working on its own platform for gaming in recent months as it prepares to go public.