2011 was an interesting year for online companies on the stock market. Groupon, Linked In and Zynga all decided to go public, but each company had a disappointing result. Zynga was the latest company to make its initial public offering, and seems to have had the worst result of all three brands.
When Zynga first announced that it would be entering the online gambling market, the company was expected to be worth $9 billion. With shares predicted to sell for anywhere from $25 to $75 each, this estimate was believed to be quite accurate. Unfortunately, things did not pan out so well for the operator.
Zynga made its debut on the stock market towards the very end of the year, and stocks were sold for well below the initial asking price. Investors spent just $10 on each share, providing the company with a valuation of just $7 billion.
These were disappointing results for Zynga, but seem to be in line with the trend of online companies on the stock market. $7 billion is still an impressive value for an online company; unfortunately, it is much lower than Zynga had initially anticipated.
