The Silicon Valley giant launchces one of the biggest tech IPOs ever.

Facebook IPO Crushes Zynga

Virtual gamer sees its stock take a nosedive.

By Sajid Farooq
|  Friday, May 18, 2012  |  Updated 9:34 AM PDT
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Facebook IPO Crushes Zynga

Joi Ito

One can imagine pictured Zynga CEO Mark Pincus on the phone to Facebook. "Hey, Zuck, dude, this IPO is really hurting us. Let's talk."

One company anxiously awaiting Facebook's public debut was Zynga.

The San Francisco-based gaming company's revenue is intimately tied to Facebook since most of its virtual games are played on the social network.

Friday, just moments after Facebook went public, Zynga's stock took a nosedive and trading was halted.

The company's stock dropped 13 percent to $7.17 before being halted, possibly to prevent it from crashing under a "circuit breaker" protection.

Zynga CEO Mark Pincus had to be torn on the news. Going into Friday's IPO, Pincus owned an estimated $425 million worth of Facebook.

Pincus' company went public in December with a $10 billion valuation. It's stock has hovered around $10 for most of the time since its IPO.
 

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