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Finance

Zynga's secondary offering will see over 20 million executive shares sold

Zynga's secondary offering will see over 20 million executive shares sold

Fri 30 Mar 2012 8:19pm GMT / 4:19pm EDT / 1:19pm PDT
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Some Zynga execs are selling nearly 55 percent of their shares in secondary offering

According to InsideSocialGames, almost half of all shares sold in Zynga's secondary stock offering will be coming from company executives. All told, the secondary offering will see a total of 43 million shares sold. 20,254,631 shares of Class B stock, which hold 70.3 percent of total shareholder voting power, will be sold alongside Class A common stock.

This is the first time Zynga executives have been able to sell their Class B stock, with founder Mark Pincus selling 16.5 million of his Class B shares, which is around 15 percent of his stake. Chief financial officer David Wehner leads with 55 percent, cashing in 386,865 shares. Chief operating officer John Schappert is selling 322,350 shares, accounting for 45 percent of his holdings. Director Reid Hoffman is selling 687,626 shares (15 percent of his stock), while director Owen Van Natta is selling 505,267 shares (19 percent).

Zynga's stock is currently sitting at $13.15 just four months after its initial public offering (IPO). At that time, the stock fell below its original $10 per share price, but it later recovered. Zynga's secondary offering is being timed to come prior to Facebook's own IPO and the company's own lock-up period, both expected in May. During the lock-out period, all outstanding shares that have not been sold can't be traded, keeping the stock stable.

7 Comments

James Prendergast
Research Chemist

730 411 0.6
Did someone hear the word "bubble"?

Posted:2 years ago

#1
Pop!

Posted:2 years ago

#2

Bruce Everiss
Marketing Consultant

1,692 594 0.4
Zynga have changed the game industry more than any other publisher. They have proven the benefit of knowing the customer intimately and then providing exactly what that customer wants.
The strategic marketing side of product development has traditionally consisted of licking a finger and holding it in the air, following a hunch or copying the competition. Zynga have now changed this and most publishers are changing to adapt which is making the whole industry a lot more professional.
I have a friend who won't play Zynga games. He thinks that they can see inside his head and just pull the strings necessary to give him a great gaming experience and to give Zynga revenue. He calls it "being a lab rat"'. But the fact is that every game developer is trying to give a great gaming experience, it is just that Zynga have bought some science to the table and so are able to reliably give a better gaming experience. The proof is in their success. What they do is what the customers want. Some people decry this, they prefer an amateur hit and miss approach. They are being luddites.

Posted:2 years ago

#3

John Bye
Senior Game Designer

479 444 0.9
There's a lot we can learn from Zynga and their methods, but (historically, at least) they aren't trying to give a great gaming experience, they're trying to milk their customers for as much money as they can.

Their traditional Facebook games have no real gameplay, no win-lose conditions, no challenge, just an endless grind. They hook you in with a simple, addictive reward loop that appeals to your inner monkey, and then charge you to play (by selling energy that lets you compulsively click on more things) AND charge you NOT to play (by selling virtual items that let you spend less time playing or even automate functions entirely so you don't need to play at all for a while).

It's marketing genius, highly addictive, and a polished operation, but it's not a great gaming experience by any stretch of the imagination. They're somewhere between a heroin dealer and a snake oil salesman.

Posted:2 years ago

#4

Tameem Antoniades
Creative Director & Co-founder

196 164 0.8
Games don't have to be about win-lose conditions or challenge. For that Zynga should be applauded not derided.

Building a business on plagiarism on the other hand is less palatable

Posted:2 years ago

#5

Bruce Everiss
Marketing Consultant

1,692 594 0.4
As a Shakespeare nut I am very happy to see new productions of plays like Lear, Henry V, Hamlet etc. They bring new interpretation to the same words.
So it is increasingly with games. Nearly every game is iterative anyway, building on the work of others, otherwise we wouldn't get anywhere.
When Zynga do their "interpretation" of a game they do it far better. Just as Rovio took Crush the Castle and made it into a far better game.

Posted:2 years ago

#6

Tameem Antoniades
Creative Director & Co-founder

196 164 0.8
If shakespear was still alive and his material still copyrighted he'd sue their asses!

Posted:2 years ago

#7

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