Social network games maker Zynga may postpone its debut on Wall Street, giving the company time to address SEC concerns and ride out the current instability among investors.
The company’s IPO, initially planned for early September, had been looked at as one of the most promising listings of the year, perhaps even moreso than LinkedIn, whose shares more than doubled when they began trading in May.
The New York Post reported late Sunday that the game developer/publisher had opted to push its first ay of trading as far back as November due to the rocky nature of the stock market since the downgrade to the U.S. credit rating this month.
However, CNBC adds that the delay is also due to questions the Securities and Exchange Commission has about how the company measures daily and monthly users.
In its filing with the SEC at the beginning of July, Zynga said it was averaging 62 million daily active users to its games as of March 31. Collectively, they spend 2 billion minutes per day playing the games. And the number of people playing them has increased steadily since last September.
CNBC did not specify exactly what sort of questions the SEC had raised about the calculations, but noted Zynga had had “extensive talks” with the commission about the subject.