The rocky markets have claimed yet another victim from the once promising technology IPO market. The New York Post reports that online gaming company Zynga is considering a delay of its upcoming initial public offering for as long as two months.
Zynga had been in a hurry to get its IPO out the door ahead of some of the other upcoming technology offerings, such as Groupon. The company behind the popular FarmVille Facebook game is one of the strongest companies preparing for an IPO right now as well, with more than $1 billion in sales expected for this year and a steady record of profitability.
Originally Zynga had hoped to raise around $1 billion with its IPO, which it had hoped to schedule for as early September. Despite the company's strong position, however, the IPO could ultimately be pushed back to November as investors wait for the market to settle.
"It makes sense for a bank to protect its clients from a market that could potentially be a bottomless pit," one source told the Post.
In the wake of the market drop caused by the U.S. credit downgrade several companies canceled or delayed IPOs planned for the coming weeks. Chinese video site Tudou went through with its offering and found a tepid market.