Zynga CEO Mark Pincus dumped $US200 million worth of stock this past April, three months before his company’s stock suddenly tanked last night, according to a new report.
According to Yahoo News, Pincus sold $US200 million worth of stock back in April, just when the year’s second financial quarter had begun. Other investors and executives, including Zynga’s CFO, COO, and General Counsel, also sold millions worth of stock. Yahoo says they sold 43 million shares of stock at $US12 a share for a total of $US516 million.
Zynga, best known as the company behind games like Words with Friends and FarmVille, blamed yesterday’s sudden stock drop on new Facebook notifications that downplay old games as well as the failure of Draw Something, which the company purchased earlier this year for $US210 million. Zynga stock dropped 41% after the market closed last night.
I’ve reached out to Zynga for comment and will update should they respond.