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BREAKING NEWS FROM CNBC'S KATE KELLY: ZYNGA COULD BE WORTH $15B - $20B

WHEN: TODAY, TUESDAY, JUNE 28, 2011

WHERE: CNBC'S "THE STRATEGY SESSION" AT 12PM ET

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.

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DAVID FABER: WELCOME TO THE STRATEGY SESSION IM DAVID FABER ALONG WITH GARY KAMINSKY WE'RE GOING TO GET TO GREECE IN A MOMENT BUT I WANT TO START WITH KATE KELLY IN A FAR CALMER LOCATION THAT THE LOVELY CONFINES OF 30 ROCK WHERE SHE HAS IMPORTANT NEWS ABOUT THE POTENTIAL IPO OF THE SOCIAL GAMING COMPANY BEHIND FARMVILLE ITS CALLED ZYNGA AND KATE HAS SOME SURPRISING DETAILS ABOUT A MASS EVALUATION THAT MAY BE ASSOCIATED WITH AN OFFERING AND ALSO WHOS LEADING IT KATE TAKE IT AWAY

KATE KELLY: DAVID THANK YOU IM HEARING THAT ZYNGA IS PLANNING TO FILE ITS IPO REGISTRATION DOCUMENTS WITH THE SEC AS EARLY AS TOMORROW THE GAMEMAKER BASED IN SAN FRANCISCO WANTS TO RAISE BETWEEN 1.5 BILLION AND 2 BILLION DOLLARS IM TOLD AND HAS SELECTED MORGAN STANLEY TO LEAD ITS OFFERING WITH GOLDMAN SACHS IN THE SECONDARY SLOT B OF A, BARCLAYS AND JP MORGAN WILL ALSO BE INVOLVED FROM WHAT I UNDERSTAND THE OFFERING IS INTRIGUING FOR A NUMBER OF DIFFERENT REASONS THOUGH ONE IS THAT IT IMPLIES A PRETTY LOFTY VALUATION SAY 15 BILLION TO 20 BILLION IF ZYNGA FOLLOWS THE CURRENTLY POPULAR LOW FLOAT MODEL AND YOU THINK OF 1.5 BILLION TO 2 BILLION AS ABOUT 10% OF THE SHARES OUTSTANDING ANOTHER FACTOR IS THAT AS PART OF THIS IPO PROCESS ZYGA HAS ALSO HELD TALKS WITH BANKS ABOUT PUTTING TOGETHER A CREDIT FACILITY OF AT LEAST 1 BILLION AND MAYBE A SHADE MORE IM TOLD A LOAN THAT AT LEAST SOME OF THE UNDERWRITERS ARE PARTICIPATING IN FROM WHAT I UNDERSTAND WHY THEY WANT TO RAISE BOTH DEBT AND EQUITY CAPITAL RIGHT NOW AND HOW BIG A CHECK THESE BANKS HAD TO WRITE IN ORDER TO GET INVOLVED WILL BE INTERESTING TO SEE FINALLY THERE ARE SURE TO BE QUESTIONS ABOUT WHAT THE ZYNGA OFFERING MEANS FOR FACEBOOK AND VICE VERSA HOW THE MARKETS RESPOND TO ZYNGA AND WHAT SORT OF VALUATION INVESTORS ULTIMATELY ASSIGN TO THE GAMEMAKER WILL BE CLOSELY WATCHED OF COURSE BUT ALSO THE ZYNGA DEAL IS SURE TO MAKE PEOPLE WONDER WHETHER ZYNGA IS TOO DEPENDANT ON FACEBOOK FOR ITS FUTURE SUCCESS OR WHETHER IT HAS A GAMEPLAN BEYOND THE SOCIAL NETWORKING SITE DAVID SO THOSE ARE SOME OF THE THINGS I WANT TO LOOK FOR WHEN WE GET OUR HANDS ON THE S1.

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