Zynga holders plan to sell up to $400M in stock
Zynga shareholders may sell up to $400 million of stock through a public offering, three months after the online game maker went public, to try to avoid a drop in its stock price. The San Francisco-based company said Wednesday that shareholders are selling stock to “facilitate an orderly distribution of shares.’’ This means the company wants to make sure its stockholders don’t sell a lot of stock all at once when the post-IPO “lock-up’’ period expires. Early investors typically must wait about six months to sell off parts of their stakes after an initial public offering. The expected wave of share sales can weigh on a newly public company’s stock price.