Forget the Black Friday rush, give the gift of Zynga stock [Report]
Since Zynga filed to go public earlier this July, the company has repeatedly altered its filing in response to demands by the U.S. Securities and Exchange Commission. Most recently, it was revealed that 6.7 million Zynga gamers pay up for in-game goods, which is up from 5.1 million in the previous year. And while revenue doubled to $829.9 million, profits continue to drop another 54 percent in the third financial quarter year-over-year.
Granted, that can be chalked up to increased costs in research and development. (Come one, did you see the litany of games released and announced this year alone?) Should the IPO go through this year, it could very well set Zynga ahead of traditional gaming companies like EA--now a direct competitor with The Sims Social--and perhaps even the mighty Activision Blizzard.
With that kind of pressure, we can kind of see why the big red dog is taking its sweet time. Nothing says "Merry Christmas" like some potentially valuable stock, huh? And here you wanted an iPad. (Alright, we'll admit it: An iPad is way cooler.)
[Image Credit: REUTERS/Adam Hunger]
Check out the rest of our Thanksgiving 2011 coverage right here.
Would you ever invest in Zynga should the IPO go through? Why do you think the public offering might be pushed back repeatedly? Sound off in the comments. Add Comment.