Zynga looks to keep staffers from selling out with secondary offering
According to TechCrunch, most of the shares are tied up to a May 28 lock-up date, though some staffers can being selling off their shares as of April 30. Zynga doesn't look to profit here, but rather keep employees from unloading their shares, making a profit and hurting the company's stock price. "The principal purposes of this offering are to facilitate an orderly distribution of shares and to increase our public float," the SEC registration reads.
Just like in the FarmVille maker's IPO, Morgan Stanley and Goldman, Sachs & Co. are lead underwriters. While non-executive staff will get to sell starting at the end of April, May 29 is when execs can sell back. There are other releases for higher-up directors and execs on July 6 and August 16. As of this writing, Zynga stock sits at a $13.40, lower from where it closed last night. Since it looks like Zynga hopes to buy some time here, we wouldn't be surprised to see big announcements soon.
[Image Credit: Mark Lennihan/AP]
Do you think that Zynga staffers will unload when the lock-up periods lift? How do you think Zynga can convince shareholders to stick around? Sound off in the comments. Add Comment.