Sections

Rumour – Zynga moving to protect stock ahead of June lock-up end

Tuesday, 13th March 2012 22:43 GMT By Brenna Hillier

Investor whispers suggest Zynga is scrambling to protect its stock from wobbling when its lock-up period ends in June.

Bloomberg claims three insider sources for word that Zynga is planning to make a second offering of shares.

The offering would allow investors to jettison some of their stock but would also lock the largest backers into a longer lock down on dumping the social gaming company’s shares – keeping the market price relatively stable. Zynga would not be releasing any additional stock as part of these manoeuvres.

Two of Blomberg’s sources said Zynga would move on this plan before June, when the lock-up from its IPO ends; a mass sell off of stock all at once would devalue the company considerably. Analysts said Zynga is right be cautious.

Zynga’s stock took a beating in the wake of its IPO last year but has risen by 42% in 2012.

Latest

0 Comments

Comments are now closed on this article.