Zynga lowers valuation to $7 billion ahead of initial public offering

Zynga is seeking a $7 billion valuation for its initial public offering, which is down $10 billion from previous reports, with analysts agreeing the firm's initial valuation was too ambitious and that the company should wait until it releases its Q4 financials. Sources state the firm will announce a price on December 15 and that the social game publisher could net around $900 million based on 100 million shares hitting Nasdaq at $8 to $10 each. If the firm hits the stock market at $7 billion as reported, it will put it in third place behind juggernauts Activision and EA, which hold a market value of $14.2 billion and $7.7 billion, respectively. Zynga is expected to hold an investor's presentation next week. Via IndustryGamers. Thanks, Colin Gallacher.