Zynga is out with its IPO at $ 9.5 per share with total market capitalization of the company around $ 7 billion. The Zynga model we had prepared when it filed the S-1 with SEC some three month back, had indicated a price of $ 9.6/share which was quite on the lower side when compared with the market expectations.
Apart from discussing the major turnoffs for the equity investors, we had also emphasized on the importance of good relationship with the Facebook for Zyngaâ€™s health. I think the success of Zynga at least for now is completely dependent on the health of Facebook. So everything boils down to good relationship between Mark Pincus, a Harvard graduate and Mark Zuckerberg, a Harvard drop-out. Perhaps thatâ€™s the reason Mark Pincus has secured most of the voting rights with him. Letâ€™s dig deeper and see the detailed share holding structure of Zynga.
Share-Holding Structure of Zynga
Class of Shares
% of Shares Holding
% of Voting Power
*Class C shares get a surprising 70 votes per share fully owned by the CEO Mark Pincus
Mark Pincus and the executives of the Zynga hold entire equity shares of class B and C
They together represent 85.4% of total equity share holding with cumulative 98.18% of the voting power
Mark Pincus, the CEO of the company alone holds 37.8% of the total voting power even though his equity stake is just 16.3%.
The Class A shares being offered represents only 14.6% of total equity share holding with just 1.8% voting rights, significantly lower than the other classes
Now the question arises whether Zynga is playing a fairgameVille with the Class-A equity holders or is it in the mood of playing Mafia Wars with the shareholdersâ€™ facebook credits?
The shareholding structure above clearly tells us the answer!!
Anil Bains has developed end-to-end financial models for Real Estate, FMCG, Power, Roads and Telecom Sector and released them as Open Source. He has extensive experience in the financial services, analytics and training domain. Apart from making Financial Modeling simple and accessible for the masses, Anil loves playing volleyball and has a mean spike.
Global Association of Risk Professionals,
Inc. (GARP®) does not endorse, promote, review or warrant the
accuracy of the products or services offered by Edu for FRM®
related information, nor does it endorse any pass rates claimed by
the provider. Further, GARP is not responsible for any fees or
costs paid by the user to Edu nor is GARP responsible for any fees
or costs of any person or entity providing any services to Edu
Study Program. FRM®, GARP® and Global Association of Risk
Professionals®, are trademarks owned by the Global Association of
Risk Professionals, Inc
CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas®, and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Utmost care has been taken to ensure that
there is no copyright violation or infringement in any of our
content. Still, in case you feel that there is any copyright
violation of any kind please send a mail to firstname.lastname@example.org and we
will rectify it.