Zynga IPO opens today, closes down 5 percent
by Xav de Matos, shacknews.com, Dec 16, 2011 6:30PM PST
The initial public offering (IPO) for social game giant Zynga has finally been released into the wild--or in this case, the Nasdaq Stock Market. The stock, which uses the symbol "ZNGA," was offered at $10 per share.
Initial performance for the stock, however, was not as popular as the company had hoped. It closed down 5 percent at $9.50. According to Dealogic, only five of 22 U.S. Internet IPOs have closed down on their first day of trading this year.
According to Venture Beat, the weak performance of Zynga's first day of trading came after "after a considerable mix of hype and cynicism" for the company. Zynga's public image has been less than stellar, forcing the company to reevaluate and reform its internal structure.
Zynga was trading at around $11 when the market opened, but "fell below its IPO price within the first 10 minutes of trading," Dealogic reported.
Zynga struck big with social games such as Farmville and Mafia Wars. The company had filed for its IPO for $1 billion, despite seeking a $2 billion offering. Though the company has been wildly successful, some reports anticipate that social game markers may see downsizing in 2012.