Zynga Shares Tumble

    In this June 2, 2011 photo, workers walk into Zynga headquarters in San Francisco. Based on papers filed Friday, July1, 2011, Zynga, the online game maker behind "FarmVille" and other popular Facebook pastimes, is going public. (AP Photo/Paul Sakuma)

    Paul Sakuma

    It was supposed to be the next hot thing, but Zynga’s IPO didn’t go exactly as planned. The online game company, which created FarmVille and CityVille, saw its stock value tumble 5 percent below its $10 initial public offering on Friday. Analysts attribute the poor showing to Zynga CEO Mark Pincus’s special class of shares that give him control of 37 percent of the company, an unusually large voting stake. The poor showing has been called a “disaster” for the young company, since the shares were expected to skyrocket in first day as a publicly traded company. Now valued at $8.9 billion—down $5 billion from its $14 billion valuation in November, when the company first announced it would go public—the poor first day could hurt other companies such as Facebook and Yelp, which are expected to go public next year.

    Read it at Reuters