Zynga, the creator of the popular Facebook game FarmVille, is to delay its long-awaited initial public offering amid stock market concerns, the New York Post reports.
The company, which has been going from strength to strength, may delay its IPO until November, to allow the precarious stock markets to even out.
Sources close to the company report that its shares want to be listed as soon as possible, but Zynga is now "no longer in a rush because of the rocky stock markets". Instead, the company is looking past Labor Day for further clarity in making any firm decisions.
Zynga filed with the Securities and Exchange Commission (SEC) to raise up to $1 billion for an offering by early September. However, with turbulent stock markets and a still economically difficult time for investors in a post-recession climate, November is looking like a safer option for the Californian social gaming giant.
The SEC is also keen for Zynga to divulge more information on the fact that it relies on a small percentage of paying customers to support its continuing revenue model.
According to an amended filing, Zynga said that less than 5 percent of its total users -- estimated at around 250 million -- pay for products using the virtual cash model it employs in its games.
Since the United States was downgraded by credit rating agency Standard & Poor earlier this month, the stock market have been in flux. Microsoft, however, was reported to have maintained its AAA credit rating -- higher than the downgraded AA+ rating bestowed upon its parent government.
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