Zynga, the makers of FarmVille and other popular social games, is planning a secondary share offering to avoid a sell-off when its lock-up expires, Bloomberg News reports.
The move will let Zynga investors sell some stock while getting large shareholders to agree to stay in a longer lock-up period, according to the report, which cites anonymous sources.
This should prevent a sell-off of Zynga’s shares, like LinkedIn experienced when its lock-up period expired.
It’s likely important for Zynga, whose shares have been on a huge run since the beginning of the year. It wasn’t until January that Zynga’s stock started trending up, and it was trading below its IPO price for a while.
Since its IPO last year, the shares have risen more than 30 per cent and are trading above $13.
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