Zynga filed papers in Delaware two weeks ago authorizing the issuance of an additional 1.9 millions shares of Series B-2 Preferred Stock, at an issue price of $12.87 per share, implying a value of about $4 billion for the company based on our estimated 320 million shares outstanding.
While no deal has been announced, the filing is typical of shares issued around a strategic partnership, with Softbank often mentioned as a good potential partner for Zynga in Japan.
Lou Kerner is a cofounder at SecondShares.com, a blog for news, commentary, and Wall Street style research covering the companies driving the social media revolution. For the last 10 years Lou has been a serial entrepreneur with previous ventures including Bolt Media, one of the original social networks which grew to over 20 million monthly uniques in its suite of youth focused web sites, and The .tv Corporation, which licensed the top level domain .tv from the tiny island nation of Tuvalu. Lou spent the first seven years of his career on Wall Street as an equity analyst following media companies at Merrill Lynch and Goldman Sachs.