The company has priced shares at $10 each, the high end of its expected range and will offer 100 million shares to investors. That puts the company valuation at about $7 billion.
That's a lot, but it's just half of where outside consultants estimated the company's worth to stand. Zynga chose to go low because of market turbulence. A recent slate of high profile tech IPOs haven't held up well since their splash debuts. Groupon is already below its IPO price – and Pandora, Zillow and LinkedIn are all well off their highs.
The company will raise about $1 billion through the stock offering, but CEO Mark Pincus will still be firmly in control of the company, thanks to the creation of a third class of stock.
Pincus would hold all of those shares, with each having 70 votes at shareholder meetings. (VC investors would get seven votes per share in their stock class, while folks who buy stock as part of the IPO will get just one vote per share.)