Hot Zynga IPO Postponed After SEC Probe
Zynga is delaying its IPO until November, the Post reports citing several sources. There are two reasons: bad markets, and an SEC probe.
The IPO markets are indeed choppy, given the problems with European debt.
As for the SEC, it doesn’t like the way Zynga states its bookings and revenue (it recognizes virtual goods revenue over a period of time), and wants Zynga to disclose more details about how few of its users pay for its games.
This isn’t so bad for the Facebook (NASDAQ:MSFT) dominating Zynga, which is profitable and can afford to wait a bit for the big exit. It might be a bigger problem for other IPO-hungry companies; especially Groupon, which just possibly could run out of cash before it makes it.
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