Barely three months after the company’s initial public offering are several Zynga insiders looking to get rich by selling off a hunk of their stock. That includes founder Mark Pincus, who will offer a wad of shares valued at more than $US200 million.
Others in on the sale include senior Zynga executives John Schappert and Dave Wehner; LinkedIn founder Reid Hoffman, who is a board member and stakeholder Google, looking to sell about $US50 million worth of stock. Zynga will receive none of the proceeds.
Zynga reported the intentions in a regulatory filing on Friday. Following the news, Zynga’s stock dropped 2.6 per cent to $US13.40. “It is never a positive to see a founder sell off shares,” Sterne Agee analyst Arvind Bhatia told Reuters. Another analyst said that despite the size of Pincus’ sale — 43 million shares — his remaining stake is so large it won’t diminish his control of the company.
In another filing, the company revealed it paid $US180 million for OMGPOP, the developer of Draw Something. The purchase was originally believed to be around $US200 million.
Zynga founder and CEO Mark Pincus to sell 16.5 million shares in secondary offering [Reuters/San Jose Mercury News]