Zynga IPO Preparation: Ready to File

Back in May we reported on social gaming specialist Zynga and its imminent plan for an IPO and then more recently told how it was aiming for a low-float IPO, whereby public shares would be limited. Today we have some more news on Zynga’s IPO as it seems the company could be ready to file.

It’s possible that Zynga will file registration documents with the SEC on Wednesday ready for an IPO this fall, according to Christina Warren over on Mashable. Zynga is most known for hit Facebook games, FarmVille, CityVille and more recently Empires & Allies and it seems the company is going from strength to strength with future plans and hiring more staff.

Warren reports that according to CNBC and GreenCrest Capital, Zynga is anticipating raising $1.5 to $2 billion putting a valuation for the company at $20 billion. Maybe we shouldn’t be surprised though as Zynga’s 2011 revenues are set to be around $1.5 billion and profit margins at present stand at approximately 40%. We should also bear in mind the huge success of other high-profile IPO’s recently, such as Pandora and LinkedIn. Groupon and Facebook are other well-known sites heading towards an IPO.

You may also be interested in our recent article about an infographic showing recent over-the-top valuations for social media sites, including LinkedIn, Groupon and Skype? What are your thoughts on the predicted valuation of $20 billion for Zynga? Let us know by sending us your comments.