(Bloomberg) - Zynga Inc. (ZNGA) Chief Executive Officer Mark Pincus, the largest shareholder in the social-gaming company, will sell stock valued at about $227 million in a secondary offering.
Pincus plans to sell 16.5 million shares, or 15 percent of his 111.9 million Class B and Class C stock, San Francisco-based Zynga, the biggest developer of games played on Facebook, said in a regulatory filing today. The value was based on yesterday’s closing price of $13.76.
Zynga, which raised $1 billion in December in its initial public offering, is enabling large shareholders to cash out in a secondary offering of 43 million shares. The terms require the sellers, including Pincus, to agree to a longer “lockup” period that keeps them from unloading additional shares until as late as August, according to the filing.
Others selling shares in the offering include Zynga Chief Financial Officer Dave Wehner and Chief Operating Officer John Schappert, as well as investors Google Inc. (GOOG), Silver Lake and Reid Hoffman. Zynga won’t receive any proceeds from the offering.
Zynga fell 3 percent to $13.35 at 9:42 a.m. in New York. The shares gained 46 percent this year through yesterday.
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