FarmVille maker spooked by market woes, delays IPO to Nov. [Rumor]
After beelining for one of the biggest IPOs in a long time, the creator of hits like FarmVille and CityVille follows a dozen of delayed IPOs due to rickety market conditions after the nation's credit rating dropped earlier this month. "It wouldn't be illogical for the bank to delay a sale, given the markets," said one source to NY Post. "It makes sense for a bank to protect its clients from a market that could potentially be a bottomless pit."
What the source is referring to is "the bubble," or the possibility that all the expectations for this market--social games and virtual goods sales--driving up its value could be inflated, meaning that if these expectations aren't fulfilled, prices could plummet and lose investors quite a lot of money. (Look up the infamous Dot-Com Bubble for more of what I'm talking about.)
Regardless, the NY Post writes that Zynga is still pursuing an IPO in earnest, most likely complete with its CEO's most recently-approved edits. It looks like nothing will stop the company from becoming potentially the most valuable gaming company in the world. Well, nothing save for maybe one game. We've contacted Zynga for comment.
[Via Silicon Valley Business Journal]
Do you think this delayed IPO will affect Zynga negatively? Does this news come as disconcerting to you even as simply a fan of Zynga games? Sound off in the comments. Add Comment.