Browse > Home / Poker News / Zynga Offers $12 Shares

Zynga Offers $12 Shares

March 29, 2012

Zynga Inc., online gaming company has announced that Mark Pincus, CEO, along with other executives, will sell stake in the company opening up at $12 per share, a little lower than the stock’s closing price on Wednesday. Zynga’s had announced that it will sell 43 million shares of stock, but a price was not indicated. According to Zynga, proceeds of the sale will not go to the company, but rather to the individuals.

Zynga, owner of such popular online games as Zynga Poker, Farmville, and other popular Facebook-based games, has said that they have been working on expanding into other non-Facebook areas, mostly mobile devices. Words with Friends, a Scrabble-style game in another well-known Zynga game for smartphones.

Zynga is only one in a handful of social Internet companies that has gone public within the past year, along with Groupon Inc., Linkedln Corp., and Yelp Inc. Facebook is also expected to go public later this year.

Zynga shareholders are now selling their shares three months after the company went public in order to avoid a drop in stock price.

Pincus founded Zynga in 2007 and will remain in control of around 35% of the company after the sale is complete, down only 1.6% because he will keep his Class C shares, which have 70 times more voting influence than the Class A shares being sold.

The Zynga stock price fell 78₵ and closed Wednesday at $12.24, 22% above the $10 IPO price and 2% above the new share offerings price. The 43 million shares, at the $12 price, will be worth around $516 million. Pincus is offering 16.5 million shares that equal nearly $200 million.

Written by Johnny · Filed Under Poker News 

Comments

Comments are closed.