Sunday 3 July 2011

Why Is Zynga Rushing Towards Its IPO?

The IPO window is now wide open, with everyone from Zynga to Groupon rushing towards it. Nobody knows how long that window will stay open (rule of thumb is 18 months), so better go public while you can. But today’s IPO filing from Zynga came particularly fast. According to one source, the actual writing of the 150+ page S-1 document was one of the fastest documentation processes for an IPO of this size, only taking two to three weeks.

CEO Mark Pincus abruptly cancelled a planned appearance at the D9 conference at the beginning of June, adding to speculation that was when Zynga decided internally to go ahead with the IPO. The three-week period referenced above was the time between what is known as the first “org meeting” with bankers and the final document filed today.

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Why Is Zynga Rushing Towards Its IPO?