One of tech’s most anticipated public offerings of the year could be delayed, according to a report in the New York Post on Monday. Online gaming company Zynga may hold off on its IPO until November said The Post, citing a “source close to the company.”
The delay is partly related to questions the SEC has about how Zynga measures its daily and monthly users, as well as its bookings, CNBC reported. “Zynga’s accounting measures are less worrisome to the SEC than Groupon’s, says one person familiar with the matter, but the agency is nonetheless working to make Zynga’s prospectus as accessible to investors as possible,” writes CNBC’s Kate Kelly.
Renowned venture capitalist Alan Patricof, managing director of Greycroft Partners LLC, told Bloomberg TV he thinks Zynga is merely waiting for a “hole in the market,” which he described as a one or two-week period where the markets are up and the underwriting bank “calls up and says we’re going tomorrow.”
Fortune.com’s Dan Primack calls Zynga’s IPO delay a “non-story.” “Is it really news that market volatility might push things back a few weeks? … This is not a story about Zynga losing anything, let along its ‘zing.’ Need proof. Just try substituting any other IPO candidate where the NY Post writes Zynga.”
News of Zynga’s potential delay comes just 36 hours after Bloomberg reported the company restructured its shareholder agreement to give founder Mark Pincus unparalleled voting power. The board approved three tiers of stock, giving each one of Pincus’s shares 70 votes, up from 10, according to a document obtained by Bloomberg. The move gives Pincus more power than LinkedIn founder Reid Hoffman or Google founders Larry Page and Sergey Brin.