Zynga IPO in doubt

Analysts are debating whether turmoil across the financial markets will damage Zynga’s bid to go public.

The social gaming giant, which has routinely won praise as a worthwhile investment, now faces a market gripped by anxiety.

Any company with an IPO planned for this week will probably pull it,” Dow Jones Investment Banking deputy managing editor John Morris said yesterday.

Confidence in new digital economy companies is being put to the test, with public newcomer LinkedIn suffering a 17 per cent decline in the US yesterday. Internet radio company Pandora tumbled 8 per cent.

These results suggest the social network economy, which Zynga is central to, may have lost its sheen. Before the market panic, many had already claimed that social gaming in particular was in a bubble.

Develop has the full story.