in Mobile Gaming

US gaming stocks rally – Zynga IPO expected for tmrrw

Online game giant Zynga could file for an initial public offering as soon as Wednesday, CNBC reports. The company reportedly wants to raise between $1.5 billion and $2 billion, in a deal to be underwritten by Morgan Stanley and Goldman Sachs. The story says the expected size of the deal implies a valuation for the company in the $15 billion to $20 billion range. CNBC also reports that Zynga is wrapping up discussions with banks about raising at least $1 billion in a debt facility.

US gaming stocks such as Glu Mobile (GLUU) and Majesco Entertainment (COOL) rallied on Tuesday by 15% and 10% respectively. Expect some positve sentiment also for G5 Entertainment as Zynga IPO will increase overall focus on gaming valuations. Also, G5 will soon release its mid-quarter update and a hike of its 2011 earnings guidance is highly likely!

Related Posts

What is your opinion? Let us know