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Zynga’s big IPO winners

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
Down Arrow Button Icon
December 15, 2011, 10:22 PM ET

The big winners from tonight’s Zynga IPO.

Zynga this evening raised around $1 billion in its IPO, by pricing 100 million shares at $10 per share. That puts a whopping $7 billion valuation on the social gaming giant (of $8.9 billion, if you include unexercised options and warrants), which will begin trading tomorrow on the Nasdaq under ticker symbol ZNGA.

Morgan Stanley (MS) and Goldman Sachs (GS) served as co-lead underwriters.

What follows is a list of Zynga’s largest insiders, and what they stand to gain:

Mark Pincus
Zynga’s founder and CEO now is now a paper billionaire, with around $1.12 billion of his company’s shares. This is on top of the $110 million he received this past March via a share buyback, which actually was priced at $13.95 per share (i.e., higher than the IPO price).

Kleiner Perkins Caufield & Byers
Kleiner invested around $10.4 million into Zynga, and its current stake in now worth around $651 million. This is on top of around $5.97 million in stock it previously generated via a share buyback.

Institutional Venture Partners
IVP invested around $12.6 million into Zynga, and its current stake is worth over $340 million. It also sold around $24.8 million worth of Zynga stock via the IPO*. This is on top of around $22 million in stock it previously generated via a share buyback.

Union Square Ventures
USV only invested less than $5 million in Zynga, but today is holding around $300 million worth of Zynga shares. This is on top of an earlier $45 million buyback and $22 million generated via the IPO*.

Foundry Group
Foundry invested less than $5 million in Zynga, but today is holding around $345 million worth of Zynga shares. This is on top of an earlier $22.58 million buyback and $25 million generated via the IPO*.

Avalon Ventures: million
Avalon invested $5.3 million into Zynga, and its current stake is worth $340 million. It also sold $25 million via the IPO* and another $20.89 million via an earlier share buyback.

Reid Hoffman
The LinkedIn (LNKD) founder and Zynga board member invested around $166,000 into Zynga nearly four years ago, and currently holds over $38 million worth of shares.

Other significant shareholders include Google (GOOG) and Silver Lake Partners, which each sold 1.69 million shares and still hold 23.3 million shares. Russia’s DST Group holds 23.4 million shares (its Mail.ru affiliate owns another 10.4 million) while Tiger Global holds around 7.6 million shares.

* Shares sold in IPO based on assumption that 15 million “greenshoe” is exercised.


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By Dan Primack
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