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Zynga buzz grows

Thursday, May 26, 2011 - 01:42

May 25 - Social media IPOs seem to be the latest rage on Wall Street, but with prices soaring there are concerns another bubble may be building. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL The applause is back for new Internet stocks headed by Linkedin, whose stock more than doubled its first day, and Russia's Yandex, which surged 55 percent out of the gate. Even Ren Ren - dubbed by some to be China's Facebook - got a first day bump of 28 percent. But there's an important difference between this wave of initial public offerings and the dot-com bubble more than 10 years ago. David Menlow is President of IPOfinancial.com: SOUNDBITE: DAVID MENLOW, PRESIDENT, IPOFINANCIAL.COM, (ENGLISH) SAYING: "What we saw in the late 90s where companies had a great idea. They had a dot com something and as a result everybody said, 'well this is a great company they are going to do something. That will be fantastic.' That was why they felt they could get the money from their public offerings. What we see now with the Linkedin offering and what will happen subsequent to that are companies that are already making money." Right now the money seems to be on Zynga as the next hot company to go public. Tech blog AllThingsDigital reported the maker of Farmville and Mafia Wars games for Facebook may file in the next week and value itself at more than $10 billion. SOUNDBITE: DAVID MENLOW, PRESIDENT, IPOFINANCIAL.COM, (ENGLISH) SAYING: "This is the stock to really have investors clamor for. It is a stock that has a tremendous financial footprint. It has tremendous growth potential and if anything deserves a high valuation, we would say certainly that versus what happened with Linkedin." Other names to look for in the pipeline: Groupon, Twitter and the much talked about Facebook all may be IPO candidates. Bobbi Rebell, Reuters.

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Zynga buzz grows

Thursday, May 26, 2011 - 01:42