Reports are that Zynga is looking to allow some current stockholders to sell shares to other investors. This secondary offering is designed to help avoid a drop in the stock price after the end of the lockup period.
“Zynga probably does not need to raise any additional capital,” said Carter Mack, president of investment bank JMP Group Inc. “This is a way to offer their existing shareholders a chance to get liquidity on the stock.”
“It’s the right thing to do to allow some of the insiders to have a liquidity event, hopefully without disrupting the market,” said Arvind Bhatia, an analyst at Sterne, Agee & Leach Inc.
Source: Bloomberg
