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Zynga Goes for a Mega Cash Out

The secondary offering could net CEO and co-founder Mark Pincus alone almost $230 million


Zynga (NYSE:ZNGA) has disclosed in a Securities & Exchange Commission filing the details of its planned secondary offering. And the numbers are huge.

The company’s CEO and co-founder, Mark Pincus, intends to sell 16.5 million shares, which comes to 15% of his ownership position. It could net him nearly $230 million.

But he’s not the only one selling out. For example, LinkedIn’s (NYSE:LNKD) co-founder Reid Hoffman will sell 687,000 of his Zynga shares (he’s a board member of Zynga).

Venture capitalists are also unloading shares. Institutional Venture Partners will sell 5.8 million shares, and Union Square Ventures will sell 5.2 million shares.

In all, the secondary offering may amount to a whopping $687 million. Zynga won’t get any proceeds. But then again, the company already has nearly $2 billion in the bank.

Zynga’s filing also provided some details on its recent acquisition of OMGPOP, which is the developer of the highly popular Draw Something app. The price tag for the deal was $180 million.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”“All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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