Fresh from the $180 million acquisition of OMGPOP, Zynga has priced the secondary offering of its stock at $12 a share. The San Francisco maker of social and mobile games is using the secondary offering to give longtime investors a chance to cash out.
Mark Pincus, chief executive of Zynga, didn’t sell any of his multibillion-dollar stake after Zynga’s initial public offering in December. But Pincus is poised to sell 16.5 million shares, valued at $198 million, in the secondary offering. Pincus and other selling shareholders have agreed to lock-up agreements that prevent them from reselling their shares until at least 90 days after the offering. Full told, Zynga shareholders will sell 42.9 million shares of Class A common stock at $12 a share. Zynga went public in December at $10 a share.
The purpose of this offering is to have an “orderly distribution of shares” and to increase the company’s public “float,” or number of shares available for trading on the market.
Zynga acquired OMGPOP earlier this week, getting its hands on the No. 1 mobile app, Draw Something, a Pictionary-style game. Underwriters have the option of selling 6.4 million in additional shares.
Created by: MBAOnline.com
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