Zynga Acquires OMGPOP for $180 Million
The good folks over at Zynga certainly don’t like to sit still and already on their second public offering. The company submitted a new S-1 filing with the SEC recently and outlined a few things dealing with shares and recent purchases that were made.
According to the filing, Zynga paid $180 million for the recent acquisition of game developer OMGPOP, the company who is behind the insanely popular ‘Draw Something’ game. It’s interesting to note that based on the filing, this purchase was for a $180 million ‘cash’ consideration. Who’d have thought that ii such a short time the company would have such reserves sitting on to make such a big purchase? Social gaming is perhaps more powerful and lucrative than once thought.
By the look of things Zynga is also busy shoring up the way it handles the cashing-out by its employees and plans to sell around 43 million shares. CEO Mark Pincus plans to sell around 15% of his shares which are worth a staggering $227 million. A further aggregate 114 million shares will be released from lock-out allowing holders to cash in ahead of Zynga’s first quarter earnings call due in April. The measured sell-off of shares prevents employees from dumping their shares, which would take the share price down in a hurry.
All in all, things look rosy for Zynga and its founders and backers.