Take-Two CEO sips on the haterade, says Zynga's 'metrics are sketchy'

You'd think gunning for a sweet $1 billion and the top spot among video games' largest publishers would be fun. Well, not for FarmVille maker Zynga: Not only is the media after the 4-year-old company, but so is everyone else. The next big timer to "be hype"--as the cool kids say-- is Strauss Zelnick, CEO of Grand Theft Auto publisher Take-Two Interactive. During the Reuters Media Summit in New York, Zelnick openly questioned Zynga's business model, casting doubt over whether it can make good on investor expectations as it quickly approaches an initial public offering (IPO).

"I would argue being the No. 1 player in (social gaming) is complicated, which is why Zynga hasn't gone public yet because their metrics are sketchy," Zelnick said to Reuters during a talk. "I think they have disclosure issues, I think you are seeing their acquisition costs go up, marketing costs go up and they have very high churn."

Zelnick was likely referring to the company's frequent amendments to its S-1 filing with the US Security and Exchanges Commission since it filed for IPO early this summer. His words also seem to allude to the 14 some companies Zynga purchased in a single year, which helped it amass nearly 3,000 employees worldwide. Finally, Zelnick could have been talking about how quickly the CityVille creator has lost daily players recently. (What a loaded statement, huh?) We can't wait to see who else gets "jelly"--that's cool now too, right?

[Via IndustryGamers]

Do Zelnick's words against Zynga have merit? Will Zynga be able to pull off a successful IPO with these negative vibes floating around?

Everybody, start your engines: Zynga will go public on Dec. 16 [Report]

Did you remember your enormous salt shaker? Good, because Reuters reports that Zynga, everybody's favorite social game maker, will make its stock market debut on Dec. 16. According to Reuters, the CityVille creator will look to raise $900 million, a hair down from the almost unanimously-reported $1 billion that will bring its valuation to $14 billion.

But hey, that's still right on par with the most valuable games company in the West, Activision Blizzard. (Of course, Reuters cites "a source involved in the process.") Zynga will reportedly ask between $8 and $10 a share on the Nasdaq under the ticker ZNGA--a fairly noticeable one, no? However, Reuters does confirm that Zynga will start its roadshow next week to spur investor interest.

That is, if investors can look past the recent torrent of reports and quips that don't paint the prettiest picture of the company behind FarmVille. The New York Times allegedly revealed that Angry Birds maker Rovio turned down a $2.25 billion offer from the company, while a recent Wall Street Journal report seems to have exposed quite the stock scandal within Zynga. Worse yet, players are apparently leaving in droves. It's time for Zynga to shift into third gear: That $900 million is atop one giant hill.

Would you ever invest in Zynga at such a price? Do you think the company could at least become the second most valuable games company in the US?