Zynga will seek to generate a further $400 million from a secondary stock offering in a bid to avoid a large drop off in share price.
That's according to the Financial Times, which claims people "familiar with the process" have stated the money will be diverted towards existing investors rather than the company itself.
Speedy issue
It's believed Zynga is taking the action to prevent a share price 'pop' after its initial IPO in December, where an early surge is replaced by a sharp fall as enthusiasm cools.
Zynga itself has claimed the second offering will be made to "facilitate an orderly distribution of shares and to increase the companys public float", though its timing just before the ending of an agreement that prevents pre-public investors from selling their shares on appears designed to keep the firm's share price high.
Commentators have also suggested Zynga is keen to set the wheels in motion before its operations on Facebook begin to decline, which research suggesting interest in the social network as a gaming platform is falling.
Currently, 96 percent of all Zynga's revenue comes from its operations on Facebook, though the company has recently unveiled its own browser-based gaming platform, sporting titles from third parties as well as its own library.
[source: Financial Times]
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Related Articles
News
Feb 13th, 2024
Mobile revenue exceeds Take-Two’s expectations, making over $2 billion in nine months
Top Stories
News
May 31st, 2024
Week in Views - Squad Busters goes global, broken app stores, and Hill Climb Racing gets the LEGO treatment
News
May 31st, 2024
Mobile Movers: All the latest appointments and job moves from around the industry
Events
Indie Game Fest & Indie Campus 2024 | Europe | May 31st |
Indie Craft K-Game Festival 2024 | Europe | May 31st |
BostonFig Online 2024 | Jun 1st | |
GameSummit Summer 2024 | Jun 1st | |
Gotland Game Conference 2024 | Nordic | Jun 3rd |
Games Mental Health Summit 2024 | Europe | Jun 3rd |
Dev Play Conference 2024 | Europe | Jun 3rd |
Tribeca Games Festival 2024 | North America | Jun 5th |