Headline RePLAY – 12.16.11

Today on Headline RePLAY: Zynga raises $1 billion in its NASDAQ debut and Sony flip-flops on the PS Vita.


Responsible for Facebook sensations like Farmville and Mafia Wars, developer Zynga raised $1 billion in an initial public offering (IPO) yesterday that ranks it as the second most valuable video game company ahead of its competitor, Electronic Arts.

Zynga sold 100 million shares at $10 per. According to Bloomberg, this sort of offering was the biggest by a U.S internet company since Google raised 1.9 billion in its IPO back in 2004.

Interestingly, Zynga shares listed on the NASDAQ did decline today by 5% to $9.50.

“Zynga shouldn’t be valued at three times what other companies in that space [social-media] are valued at,” explained Jeffrey Sica, chief investment officer of Sica Wealth Management LLC. “That’s why people looked at it as having a potential downside. Investors found it too rich.”

Nevertheless, Sica’s analysis painted a complicated picture that despite concern in the market, he advised clients to buy the Zynga IPO.

*Source: Bloomberg


Here is a confusing series of events: first Sony said the PS Vita was locked to a single PSN account, and then it said the handheld can have multiple accounts via memory cards. And now it’s back to square one as a representative told Wired today that the Vita can only support one account.

 “[The] PSN account is tied to the hardware and the memory card, not just the card,” a different Sony representative told Wired in an e-mail, “which means that if a second person is using your Vita, it’s not just a case of switching out memory cards, it’s clearing out all of your saved data on the Vita itself when you do the factory reset.”

“In other words, PlayStation Vita is intended to be played by only one user,” the representative said.

*Source: Wired

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