“ZNGA” Traded on the NASDAQ
In the following weeks, Zynga would be traded on the NASDAQ. This comes after much delays and issues regarding its filing for Initial Public Offering (IPO) (Video Explanation). This is closely related to Groupon’s situation as discussed from class. IPO of Groupon, was delayed due to various accounting discrepancies. Zynga was also faced with such problems when it filed for IPO with the Security and Exchange Commissions (SEC). The news of Zygna’s IPO was confirmed by the SEC after successive alterations to their financial reports. Events of falsification in accounting could be disastrous to Zynga. Investors might grow to be skeptical of the company, turning away enormous investment funds away from the company. Thus, accurate accounting practices (GAAP) are of paramount importance. Accounting principles must be adhered for companies to successful bid for IPO with the SEC, and earn trust of investors.
Pertaining to the rapid push for IPO release, Zynga’s quick push for IPO is for capitalizing on the market’s volatility. Social Media market is deemed as a rather immature market. Thus, changes are occurring rapidly. More and more social media companies are filing for IPOs to boost the funds they have. The recent social media IPO boom pushes Zynga to launch its IPO as quickly as it can. Zynga is trying to speed up their IPO to optimize the benefits that can be reaped.
Videos below provide valuable insights on the topic.
Article Source: Rusli, Evelyn M. “Zynga Is Headed for the Nasdaq.” Mergers, Acquisitions, Venture Capital, Hedge Funds – DealBook – NYTimes.com. The New York Times Company, 13 Oct. 2011. Web. 24 Oct. 2011. <http://dealbook.nytimes.com/2011/10/13/zynga-is-headed-for-the-nasdaq/>.