Zynga Files for Stock Offering by Shareholders |
| Wall Street Journal - Mar 14, 2012 |
Zynga Inc. filed plans for a secondary stock offering by certain shareholders as the social-gaming company looks to increase its public float.
Zynga won't receive any proceeds from the offering.
A person familiar with the matter had said that Zynga investors planned to sell stock in the near future, just three months after the company's December initial public offering, breaking a 165-day lockup early in an attempt to reduce future volatility of the stock price.
Some of its investors who sell in the sale will have to agree to extend the current lockup, said this person. The agreement is designed to "stagger" future sales in a way that is aimed at avoiding the sudden impact of a bigger sale at one time, the person said.
Such lockups can generally be broken only with the agreement of the IPO underwriters, according to the Zynga IPO disclosure. A lockup is an agreement by a company's investors not to sell stock for a specified period after an IPO.
Read Full Article from Wall Street Journal
- Posted: 2012-03-14 10:15:07
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