Zynga has become one of the world�s top game companies in just a few years.� It helped that it had the foresight to create online titles for Facebook�s platform.� And next week, Zynga will hit the public markets with a widely anticipated IPO.
But the company isn�t necessarily a pioneer.� In fact, Asia has been the trail-blazer in online gaming.� A variety of companies generate billions from selling digital goods to online players.� These are items, like �energy,� that help players improve their performance.
One top operator is Nexon, a South Korean firm that was started in the early 1990s.� As a sign of it success, this week the company priced its IPO this week on the Tokyo Stock Exchange at the midpoint of its expected range. Its underwriters included Nomura, Morgan Stanley and Goldman Sachs.
While there was solid investor demand, it wasn�t enough to provoke a spike in valuation.� Still, Nexon raised $1.2 billion, and the stock will begin trading on Dec. 14.
The question for U.S. investors is what this might mean for the Zynga deal.� The Nexon IPO provides even more validation that investor interest is definitely becoming muted.� Even though the markets have rallied in the past week, some of the top U.S. social media-related companies are still sporting losses:
| Company | Ticker | Aftermarket Return |
| Groupon | Nasdaq:GRPN | -27% |
| NYSE:LNKD | -26% | |
| Zillow | Nasdaq:Z | -36% |
| Pandora Media | NYSE:N | -37% |
| Angie�s List | Nasdaq:ANGI | -16% |
| Renren | Nasdaq:RENN | -80% |
In addition, the social gaming industry is still relatively new, especially in the US.� Might there already be maturation in the market or will a slowing economy take its toll?
At the same time, Nexon does have a nice cash hoard, so perhaps it could get more aggressive in U.S. markets.� After all, the company has already seen success with Facebook games like MapleStory Adventures and Zombie Misfits.
Nexon is just another headache for Zynga to worry about.
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