Zynga drops IPO valuation to $10B, but it's still more than EA [Report]

The big red dog looks like it's playing it safe. According to Reuters, FarmVille creator Zynga has lowered its valuation--what a company is expected to be worth based on various conditions--from $14 billion to $10 billion for its upcoming initial public offering (IPO). (Of course, the news outlet cites nameless sources in its report.) This would make Zynga worth less than gaming giant Activision Blizzard's $14.21 billion.

However, the CityVille maker would still be leaps and bounds beyond current second place company EA's $7.69 billion. According to market analysts, $14 billion would have been asking for too much in this shaky economic climate. "I think they must have realized that getting $14 billion or higher would be a tough thing in this market," Sterne Agee analyst Arvind Bhatia told Reuters. We were wondering how they would pull that off."

Other analysts suggest that Zynga wait to go public, as the company just released its fastest-growing game to date, CastleVille, and revenue from that game hasn't even been recorded yet. According to Reuters, the company still seeks to raise $900 million initially at $8 to $10 a share when it hits the Nasdaq as "ZNGA" on Dec. 16. Company CEO Mark Pincus and crew are also still expected to hit the road next week, showing their stuff to potential investors. And Zynga will have to fight tooth and nail against the media, other companies and its own numbers for those billions.