Do you think Zynga chief executive Mark Pincus looked around and thought, "If LinkedIn can get a market valuation of $9 billion, I can double that!" If so, it would explain rumors that Zynga will file for its initial public offering this week.
Along with LinkedIn, the Russian search giant was valued at $13 billion after its IPO, so pressure may be on Pincus to make a move before any tech bubble bursts. While there are several people who say we're not in a tech bubble, we can also say there were many who said the same thing before the real estate bubble burst and nearly crippled the nation.
LinkedIn is now worth $9 billion, even though it only netted $3.4 million last year. Does that make much sense to you? It's even causing some Wall Street analysts to take a breather and try to figure out what's going on.
U.S. & World
News from around the country and around the globe
Now Zynga, which is almost wholly dependent on Facebook, is now considered to be worth $10 billion after making a $400 million profit in 2010, according to AllThingsD. And its IPO could easily be double of the expected $10 billion. After all, its profits are 100 times larger than LinkedIn's.
We think Pincus should unveil his IPO quickly before the popping sound.