Zynga IPO Deferred Due to Stock Market Unease

For some time now we’ve been bringing you news on Zynga, the social gaming experts, and its impending IPO. We told how a low-float IPO was the intention and then brought further news that Zynga was ready to file and also an infographic showing the company’s path to IPO. However, it seems that Zynga has now deferred the planned IPO, due to current stock market unease.

The IPO was set to go ahead next month but will now be delayed until November, according to Todd Wasserman over on Mashable, sourced from The New York Post. Two sources said to have knowledge of Zynga’s intentions have revealed the news, apparently due to “rocky stock market” conditions worrying the company.

Zynga is known for popular Facebook games such as CityVille, the ever-popular FarmVille and more recently Pioneer Trail and has realized enormous growth, especially considering it was only launched in 2007. Its intended IPO, announced in June, was aiming at raising $1.5 to $2 billion but over the summer the stock market has suffered, with tech stocks being severely hit. Over a dozen IPO’S have been delayed since Standard & Poor’s US credit downgrade and now Zynga is added to the list.

Zynga itself is still seeing profit and looks set to attain $1 billion worth of sales this year. The company has so far made no comment but is restricted by SEC regulations and the bank guiding the IPO, Morgan Stanley, has also declined to comment. Zynga now plans to wait until the stock market picks up and hopes to have more idea of future plans after Labor Day, according to a source.

What are your thoughts on Zynga delaying its IPO? Do you think the situation regarding the stock market will be any better by November? Let us know with your comments.