Social gaming developer Zynga could be putting their plans for an initial public offering on hold for a few months. The hot tech IPO climate is cooling, leaving Zynga to reconsider when they want to go public, reports the New York Post.
Zynga announced plans to go public in a Form S-1 filed with the United States Securities and Exchange Commission on July 1, 2011. It was widely believed that the social gaming giant was aiming to earn $1 billion in the IPO. An amended version of the S-1 filing this month said that Zynga had an internal valuation of more than $11 billion as of March.
The Post now says that two sources familiar with knowledge of Zynga’s plans believe the company will hold off on the IPO, possibly until November. Apparently Zynga is uneasy about jumping into the rollercoaster that the market has become lately in addition to concerns with the SEC filing.
According to CNET, the SEC told Zynga to stop using certain non-traditional accounting practices in its filings. The commission also found issue with the fact that Zynga relies on a small number of paying customers for the majority of sales. In the above mentioned amended filing, Zynga claims that less than 5% of users pay for virtual products in-game.
Pending the IPO, the future looks bright for Zynga and social gaming in general. Earlier this month Google+ announced gaming for the ever-growing social network. The company launched Google+ games with few partners in order to work out all of the kinks with the APIs and get end-user feedback before expanding to include more partners and games.