GamesBeat

Zynga considering secondary offering of shares to avoid post lock-up selloff

Zynga is reportedly considering a secondary offering of shares on the stock market, following its $1 billion initial public offering in December, according to Bloomberg, which cited unnamed sources.

The new offering is designed to let Zynga investors sell stock while getting large shareholders to agree to a longer lock-up period that stops them from dumping shares. Typically, employees and other shareholders are allowed to sell their stock about six months after an IPO. That reassures investors that employees won’t dump their stock as soon as they are able.

LinkedIn, by contrast, saw its stock drop after its lock-up expired in November. Zynga spokeswoman Dani Dudeck declined to comment. If investors agree to a longer lock-up, then Zynga can avoid everyone selling shares all at once, sometime around June.


Mobile developer or publisher? VentureBeat is studying mobile app analytics. Fill out our 5-minute survey, and we'll share the data with you.
0 comments

GamesBeat is your source for gaming news and reviews. But it's also home to the best articles from gamers, developers, and other folks outside of the traditional press. Register or log in to join our community of writers. You can even make a few bucks publishing stories here! Learn more.

You are now an esteemed member of the GamesBeat community. That means you can comment on stories or post your own to GB Unfiltered (look for the "New Post" link by mousing over your name in the red bar up top). But first, why don't you fill out your via your ?

About GamesBeat