Zynga's highly anticipated public offering is expected to value the company at $10 billion, well below a recent analyst estimate, according to published reports.
The game developer, which is expected file its IPO plans with regulators on Friday, intends to raise $900 million based on a share price range of $8 to $10, sources tell Reuters. Shares are set to be priced on December 15.
The $10 billion valuation is lower than the $15 billion and $20 billion at which some had expected the company to value itself, TechCrunch noted. Zynga indicated in an SEC filing two weeks ago that an independent analysis of the company had determined it to be worth $14.05 billion.
Zynga representatives declined to comment.
The lower valuation may be a result of stock market worries and investor concerns about the company. Zynga's accounting procedures have attracted the attention of the Securities and Exchange Commission, which told the company to stop using certain "non-traditional accounting measures" in its filings. It also expressed concerns that Zynga said it relied on a small number of paying customers for most of its sales.
Launched in 2007, Zynga has turned into a force for online social gaming with such popular titles as FarmVille, CityVille, and FrontierVille. The company offers certain games through Facebook but also provides several through various mobile platforms.