Zynga stock market debut lags behind expectations at $9.50 a share

It's now the end of the business day (and week, phew), and more importantly the end of the Zynga's first day on the Nasdaq. Well, how did it do? As it turns out, not so hot. When the company hit the market this morning, it was asking for an even $10 a share, but now its public stock sits at $9.50 a share, a 5 percent dip from asking price.

It turns out we were right in asking whether the Nexon initial public offering (IPO) spelled bad news for Zynga, and the MapleStory maker only suffered a 2 percent drop on its opening day. Still, the company earned $1 billion today at a $8.9 billion valuation. Because Zynga still came out on top of direct competitor EA, which is worth just $6.7 billion, many are still excited about the results of the IPO.

However, with a 5 percent loss on the first day out, it's unclear whether the CityVille maker can sustain on the market. Does this mean it can only go down from here? Not necessarily, but something drastic and inspiring would have to occur, as potential investors may already be set in their ways as to how much Zynga is worth.

Believe or not, but a lot rides on this offering beyond just a company making a lot of money. This IPO, if successful, serves to validate the business of easily-accessible, free-to-play games for a mass audience. (If not, well, the free-to-play market might start to lose its luster.) However, also if a money-maker, it could validate the worst of criticisms lobbed at social games: That only the status quo makes for a lucrative, popular--and thus an existing--social game.

What do you think of Zynga's performance on the stock market today? Do you think this means anything for the games industry?

FarmVille maker CEO: 'Our employees have a real love for Zynga'

Zynga went public this past Friday, and the results were ... less than favorable. But on top of a slipping stock price, investors and recruiters alike have voiced concerns that the company's offering will inspire staffers to cash out, or sell their stock in the company and abandon ship. Not according to what CEO and founder of the FarmVille creator, Mark Pincus, told Fortune.

"I'm not sure why there's been all that speculation other than that we've been in a quiet period," Pincus told Fortune. "Our company has historically had very low attrition, much lower than other public or private companies in Silicon Valley. I know that hasn't been reported on, but it's true. We also continue to have an amazing inflow of resumes and talent."

The man behind CityVille was referring to suspicions sparked by a scathing New York Times report in which an EA recruiter said that Zynga's intense culture might drive employees to sell their shares and join other companies. (In this recruiter's case, hopefully EA.) "Our employees have a real love for Zynga and real pride," Pincus told Fortune. "We've asked them not to go out and defend us in the press or blogs, so I don't think that's come through publicly yet."

However, even before Zynga filed to go public, employees have spoken out on the company's culture and Pincus's approach to the business of making games. As of this writing, Zynga shares hover around $8.80--over a dollar less than the company's initial $10 asking price. If Zynga employees are going to sell, now's the time to do it.

[Via GamesIndustry.biz]

Do you think the Zynga IPO could result in an employee exodus? Would you leave the company now if you had enough shares in it?

Zynga offered the Angry Birds maker $2.25 billion, and it walked away

We're just as baffled as you are, trust us. According to a recent New York Times report citing three anonymous sources, the FarmVille maker offered Angry Birds creator Rovio $2.25 billion in cash and stock this summer ... and the Finnish company passed. While this isn't the focus of the report, it's the most interesting news within the piece. Why?

The report largely echoes several stories from the past year: Not everything is as magical and wonderful at Zynga is one might think. (But it does make you wonder how or why a company would turn down over two billion clams.) According to the New York Times, a quarterly staff survey at Zynga garnered over 1,600 responses with "plenty of criticism, including one person who said he planned to cash out and leave after the initial public offering."

Zynga thrives on a ruthless culture, according to the New York Times, and that goes beyond what the recent Wall Street Journal report revealed. The report goes on to unveil that employees are "constantly measured" and are expected to meet intense deadlines. The pressure reportedly reaches breaking points, or outbursts from CEO Mark Pincus and other senior staff that drive some employees to tears.

By the same token, it's said that Zynga rewards employees with lavish trips to Las Vegas when the company hits milestones. All in all, this news is reminiscent of reports like Pincus's choice words to his designers and practices employed by the company early in its life. In other words, Zynga is under fire yet again, just before its imminent initial public offering. But seriously, what drives you to turn down $2.25 billion?

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.