Zynga was founded in 2007, and then proceeded to sap as much productivity from Facebook users as was possible. The maker of games like Farmville and Cityville filed for an IPO back in June, but reports are claiming that the company is now backing off , and could delay the offering until November or later.
Zynga was looking to rake in about $1 billion from selling stock, perhaps even as early as next month. The recent stock market instability has apparently given the social gaming folks cold feet. Investors are still chomping at the bit to get a piece of the Zynga gravy train, though. The company’s SEC filing set its value at about $11 billion in March 2011.
Even if Zynga decides to go through with the IPO, the SEC has expressed concern over the small percentage of the user base that actually buys content from Zynga. The regulatory filings make it clear that just 5% of players have ever bought a virtual item. Even with those small figures, Zynga is expected to see $1 billion in revenue this year. That’s a lot of virtual crops. Still, if Zynga moves forward, it isn’t necessarily going to be clear sailing.