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Zynga IPO: Bubbleville? - Tech Tonic

Wednesday, December 14, 2011 - 03:14

As Zynga prepares for the largest technology public offering since Google, Reuters’ tech editor Peter Lauria, social media editor Anthony DeRosa and reporter Liana Baker hash it out over Zynga’s stimated $10 billion valuation.

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So any year of big tech ideas -- -- -- possibly see the biggest of all with using that you know about the popular. Mobile and social gaming platform Zynga is seeking to raise 925. Million dollars an evaluation of nine billion which will make it. The largest tech company IPOs -- schools Leon. On video game where we -- think that valuation nine billion things like -- evaluation but just a couple of months ago we're kind of thing -- fourteen and one is better reaction to -- Groupon which went public that was hotly anticipated and subsequently weekly fell below its definitely we're seeing. Hot tech -- yes come out of the -- and the copilot you know I'd like pandora app that lets be clear what what does he actually sells me it's not -- money up virtual items virtual -- who all think how -- these guys make me make -- million dollars and ninety of its own episodes -- items very high margins of what has it that all its revenue. Digital companies like yeah I had to -- a think Don -- that it was targeting a 40%. Operating so there is a lot of money -- -- digitally when you know where manufacturing. What I wanna know is that what what are we gonna see here are we gonna see something where those Republicans get initial they pop and then weekly here and it's gonna fall below the prices you have anything they -- I mean I think that it seems like just a few if you look at the activity. It's definitely starting to see shift where people are not as excited about. All these social games you're not seeing it show up and on FaceBook -- as -- east do Arab and happy excited but after I spoke at a very excited I don't. I think investors are coming from a very different point of views but you you actually sent us some information showing that losing his numbers were starting to precipitously fall. So there's a report that came out from -- journey and I Tuesday showing up -- which is how. Think adventures in upfront revenues sequentially has been the clients of that high growth rate. We've seen the past year this you backing the growth of FaceBook could be waning. -- as they're overly reliant on FaceBook so if they make a change and as we know FaceBook make changes all the time they can be making changes that could significantly impact the way this thing it does business. The people want to invest in thing I have to assume that being. Is calling is about the time -- -- very good relationship but it's one question comes up a lot how good is this relationship between thing is that it can be deadly. Something happens -- -- that could speak to the long term growth prospects but investors are. I think dollar signs that just look at the numbers and yet profitable company Groupon wasn't profitable pandora -- tropical. They're seeing Zynga which is on track eight billion dollars. Zynga had first mover advantage because they had the foresight then to see this area have time but now. You've got the Activision and take two's and. What we're seeing is a market share or let's all went really deep pocketed players likely mention the fact that apple and. So losing it goes public at the end of the week we'll see -- fit that can live up to the hype for there will be another group Groupon pandora and -- views -- -- quickly dropped below its offer for.

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Zynga IPO: Bubbleville? - Tech Tonic

Wednesday, December 14, 2011 - 03:14