Zynga IPO

Zynga, the online games provider within Facebook, recently filed for a forthcoming IPO.
Share price has not been announced but it is anticipated that they will attempt to raise $1 billion with a company valuation of $15 -$20 billion.

A valuation of $16 billion gives a 33 times revenue multiple.
By comparison the Linkedin IPO in May gave Linkedin a valuation of 17 times revenue, about half that forecast for Zynga.

Comparing Zynga to Linkedin shows Zynga in a much stronger financial position with a larger user base.

Zynga 2010 revenue was $597m compared to $243m with Linkedin.
Zynga 2010 income from operations was $125m compared to $3.4m with Linkedin.
And Zynga report 116m monthly unique users of their service at end of 2010 compared to 46m monthly unique users of the Linkedin service.

So Zynga is a far more profitable operation than Linkedin and more than double the revenues and user numbers.

So we can expect to see a larger valuation for Zynga than $16 billion.