Zynga Insiders, Including Its Founder, Look To Unload $500 Million In Stock

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]


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    Why do I suddenly see the farmville hordes screaming and racing for their wallets...

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