Last week�s IPO by Zynga (Nasdaq:ZNGA) was supposed to be a big day for the social-gaming space. But it turned out to be a disappointment as the stock has fallen by 10%, wiping out $1 billion in market value.
In light of this, other game companies may find IPO opportunities are better outside of the U.S. markets. Just look at Rovio, creator of the highly successful �Angry Birds� franchise. According to a reportin Reuters, the company may want to go public in Hong Kong.
This exchange has attracted other hot offerings this year. These include Prada, L’Occitane and Samsonite. These are some of the world�s top brands, so why not one from the digital world?
Rovio doesn�t lack for ambition. Its senior managers have declared that they have the right stuff to become the Disney (NYSE:DIS) of the 21st century. Already, the company has seen 600 million downloads of its games and its merchandise is flying off the shelves. There are even plans for an animated feature film.
But Rovio still has a long way to go to be a big-time player in gaming. Revenue for this year is roughly $100 million, while Zynga�s are expected to go over $1 billion. Meanwhile, Disney has annual revenue of $40 billion.
At the same time, can a company with a small cast of characters really sustain interest for the long haul? As we know, kids can be extremely fickle.
But Asia should continue to provide many growth opportunities, especially for branded entertainment products. And Hong Kong could provide Rovio with lots of big-time investors.
The IPO speculation is still premature — even Rovio thinks an IPO isn�t possible until 2013. And a lot can happen before then, especially in the ultra-competitive gaming world.
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