Mark Pincus, Zynga Inc’s CEO, is conducting a sale of Class A shares that will decrease his ownership from 15.5% to 13%. If sold on Friday’s closing price, Mark will be walking away $220 million wealthier…not too shabby.
This second offering of shares will not provide any proceeds to the company, however it will increase the total Class A shares outstanding to 164.4 million. The move is more of an attempt to stabilize the stock price of Zynga, which has been relatively volatile since its IPO.
Although a significant amount of his shares are going to be sold in the market, Mark’s voting stake in the company will only slip to 35.9% from 36.5%. This is due to Mark’s ownership of Class C shares, which have 70 times the voting rights to Class A.
Zynga’s initial IPO was considered to be a disappointment when share prices dropped below its original offer price of $10. However, with the news of Facebook going public, Zynga has been gaining more and more investor’s confidence which as been reflected in its share price of $13.40.
The big question now becomes how will Zynga perform in the next few months. Considering the continual growth of the social media games market along with the future prospectus of stable share prices, I would say the future looks bright for Zynga.
Read More at the WSJ.
