Confirmed: Zynga proposes secondary offering

Zynga confirmed a planned secondary offering today with a Securities and Exchange Commission filing for certain Zynga stockholders to offer shares of Class A common stock. The developer doesn’t receive any proceeds from the sale of the shares.

The CityVille creator uses a three tiered stock system, with Class A having the lowest voting power of the three. The other two stock types hold 98.2 percent of shareholder voting power. According to the filing, the purpose of the secondary offering is to increase the company’s public float. According to an anonymous source in Bloomberg’s initial report, the offering also allows investors to sell some stock while making larger shareholders agree to a longer lockup period that prevents them from unloading shares.

Given how dramatically Zynga’s stock price fluctuates whenever new revenue and traffic figures become public information, it makes sense that it would try to create some stability among its stockholders. The developer’s market cap shot up 12 percent to $8.66 billion from $7.4 billion immediately after Facebook’s S-1 filing. Share prices dropped nearly 18 percent just 13 days later after Zynga’s first earnings call as a publicly traded company. Zynga’s platform announcement earlier this month boosted share price by almost 10 percent. Today, trading opened at $13.44 per share — and looks to be on the rise as news of the secondary offering spreads.

Meanwhile on the traffic front as recorded by our AppData traffic tracking service, Zynga’s daily active users are dipping slightly — down almost 2 percent in the last week to 55.6 million.

Facebook Marketing

Mediabistro Event

Facebook Marketing

Starting January 13, work with the group marketing manager of social media at Microsoft/BingAds to grow your business on Facebook! In this course, you’ll learn how to set up your company page, understand Facebook best practices, and execute a monthly content strategy. Register now!


Leave a Reply

Get the latest news in your inbox
interested in advertising with inside social games?

Social Media Jobs
of the Day

Assistant Editor

8 Inc.
New York, NY

Copywriter & Editor

Santa Monica, CA

Director of Marketing & Communications

Neumans' Kitchen
New York, NY

Social Community Manager

Tallahassee, FL

Editorial Director

Phoenix House
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us