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Zynga Plans Biggest Internet IPO Since Google


Zynga is looking to sell $1 billion worth of shares, priced between $8.50 to $10 a share and valuing the company at nearly $7 billion, but still below its initial plans according to an amended initial public offering released on Friday.

If Zynga's IPO is completed it will be the biggest for a U.S. internet company since Google's (GOOG) 2004 offering. The maker of popular games Zynga Poker, FarmVille, Mafia Wars and CityVille, will be offering 100 million shares, or 14.3% of total shares, in the biggest stake sale of the year.

In November, Groupon (GRPN) filed an offering to raise $750 million and earlier in 2011 LinkedIn (LNKD) raised $175 million in an offering, both with stake sales below 10%. While Zynga's share sale would eclipse both offerings, it would be a fraction to a Facebook IPO, which The Wall Street Journal reports may fetch the social network company $10 billion.

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The San Francisco-based company had tried to do a larger IPO, but cut its size as public offerings have faltered in interest among investors. Zynga's IPO has been delayed multiple times after earlier expectations of a filing this summer and fall, as markets waned.

Groupon has fallen over 12% since its November filing, while overall, recent Dealogic data shows that newly public companies have fallen nearly 10% in their first six months of trading.

In Zynga's offering many current private shareholders like Avalon Ventures, Foundry Group, Institutional Venture Partners and Union Square Ventures will sell shares to public investors.

Zynga's largest shareholders, founder Mark Pincus and venture capital firm Kleiner Perkins Caufield & Byers won't be selling shares, according to Bloomberg reports.

Morgan Stanley (MS) and Goldman Sachs (GS) will lead Zynga's IPO and the company, founded in 2007, will trade on Nasdaq under the ticker ZNGA.

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