[ZGA] Zynga Down 5% On First Day
Zynga has followed Nexon with a disappointing debut day of trading, closing down 5% on the first day of trading after the company’s initial public offering. Stock prices fell from their debut of $10.00 to $9.50 a share at the end of trading. Unlike Nexon, however, Zynga has gone public on the United States’ NASDAQ, while Nexon went public on Japan’s Tokyo Stock Exchange.
Zynga currently has over 2,200 employees and published over 24 games which reach over 150,000,000 active users a month. Zynga’s IPO raised $1 billion for the company and the company is valued at approximately $7 billion. This makes it the largest internet-based IPO in North America since Google in 2004.
This compares with Nexon’s 3,500 employees as of September 2011, 57 games, 77,000,000 active users per month, $1.2 billion raised in their IPO and Nexon’s approximate company value of $8 billion. Nexon’s IPO is Japan’s largest for 2011 and the second largest internet-based IPO in the world this year.
Zynga’s 2010 revenue was $600 million while Nexon’s 2010 revenue was $878 million.
Zynga mainly focuses on the developing and publishing of social network games while Nexon has recently been aggressively exploring, experimenting and investing in social network games and the social network space. It is suspected that the poor start for both of these companies on the public scene might be due to investors believing that the social gaming market might be saturating. But mind you not, I expect a bright future for the trading of both Zynga and Nexon!