Zynga The Social Gaming Company to Sell Over $600 Million In Stock

Zynga The Social Gaming Company to Sell Over $600 Million In Stock

Zynga Inc (NASDAQ:ZNGA) a major player in the world of social media gaming, made a public announcement on Friday that they were planning on selling about $687 million of stock investments. This news comes after the company mentioned plans of selling $400 million but it required investors to hold onto their shares for a period of 165 days. This new offer will allow investors to sell the shares before the lock-up period.

This is good news for people who are seriously considering in investing in Zynga. When the company went public with shares last winter, they only released about 14% of their shares. The recent change now offers about 21% of shares. This means that not only can more people invest in the company, but they can also buy more shares and that increases the bottom line. The current shares are conveniently priced at $13.76.

Zynga first got their start by offering their games through Facebook and now they also offer stand-alone gaming options through smart phones and their new website. Unlike many online gaming services, Zynga allows users to easily play games with their friends. Although all of the games on the website/Facebook platform are free to use, it also allows them to buy and share “virtual” goods with other players. Their current and popular game options include CafeWorld, Cityville, Empires & Allies, Words With Friends, and Mafia Wars.

Is Zynga’s financial move as a company a good thing or bad thing? At first glance, it seems that this could be a smart move for a gaming company that wants to increase their revenue but the real question is for how long? Are many people going to want to invest in an online gaming company, especially one that’s linked to Facebook? Another thing to consider is this: how long will the trend of social media gaming last? People who invest in technology and online media companies understand the ever-changing world of modern computing and only they can decide if this is an investment worth making.

About the Author

Anna Peel
Anna Peel is a professional writer. In the past four years, she has written for many websites including BSC Kids, Wasabi Media Group, Boomtron, and many others. She currently live in Savannah, Georgia and occasionally blogs about fashion during her free time.