Zynga IPO



They have a contract with FB that if FB says "no" to one of their games, then they can not offer it to another social network. That may be good now with FB in the lead, but when the next big shiny thing pops up and challenges, that posses a problem for Zynga. They are too tied to FB's rev.

After saying that, it's still going to be a big'un.
 
We'll see where they are in a year? Zynga's games are boring and the "ville" franchise seems to be falling short of spectacular lately.
 
Well this may be one of the better IPOs lately, i still don't understand how any invests any real money in these horseshit companies or how they even get IPOs in the first place.
 
TFLNetwork said:
Well this may be one of the better IPOs lately, i still don't understand how any invests any real money in these horseshit companies or how they even get IPOs in the first place.
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Because they aren't horseshit companies? Some are extremely overvalued (linkedin), but most of the companies themselves are still quite solid.

Zynga has a massive opt-in user based at the moment (240 million people have played their games).

The problem comes in that a lot of them are readying themselves for IPO's rather than building sustainable businesses (facebook is guilty of this and groupon even more so).

Google worked out because their business model as excellent and they continue to build rather than trying to turn on all revenue streams at once (hell they still haven't really turned on some of their rev streams).

Pretty much all American tech stocks are overvalued at the moment so I'll be staying well away, especially when their are solid Australian companies producing 10% yearly dividends WITH franking credits.
 
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