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Zynga Hoping for the IPO Jackpot?



    Joi Ito
    One can imagine pictured Zynga CEO Mark Pincus on the phone to Facebook. "Hey, Zuck, dude, this thirty percent vig is really going to hurt. Let's talk."

    Do you think Zynga chief executive Mark Pincus looked around and thought, "If LinkedIn can get a market valuation of $9 billion, I can double that!" If so, it would explain rumors that Zynga will file for its initial public offering this week.

    Along with LinkedIn, the Russian search giant was valued at $13 billion after its IPO, so pressure may be on Pincus to make a move before any tech bubble bursts. While there are several people who say we're not in a tech bubble, we can also say there were many who said the same thing before the real estate bubble burst and nearly crippled the nation.

    LinkedIn is now worth $9 billion, even though it only netted $3.4 million last year. Does that make much sense to you? It's even causing some Wall Street analysts to take a breather and try to figure out what's going on.

    Now Zynga, which is almost wholly dependent on Facebook, is now considered to be worth $10 billion after making a $400 million profit in 2010, according to AllThingsD. And its IPO could easily be double of the expected $10 billion. After all, its profits are 100 times larger than LinkedIn's.

    We think Pincus should unveil his IPO quickly before the popping sound.