A new offering is to be made of Zynga shares, 43 million of them to be exact, priced at $12 a piece. This will generate an impressive $515.6 million in total, with all offered shares coming from existing investors and executives.
However, despite the over half billion total sale price for the available shares, Zynga's itself won't be making anything. The move will benefit it though, by facilitating an, "orderly distribution of shares and to increase the company's public float." The lock-up period for the company will end soon, at which time the public will get its first chance to buy up any available stock. According to the New York Times, this move by Zynga should help maintain more of a steady share price when that happens.
Many of the Facebook game maker's investors were able to sell big blocks of shares in the December offering, but this is the first time that executives at the firm will be able to unload any that they don't want - making substantial private fortunes for those that choose to cash out.
It's being reported that the chief operating officer at Zynga, Mr John Schappert, will be selling just under 325,000 of his own shares. If the $12 holds steady, that represents nearly $4 million for him alone. In total some 21 million shares will be made available as part of this offering.