Zynga: second share offering

ZYNGA is planning a secondary offering of $400m (£255m) in a bid to keep its current investors happy.

The social gaming company, which listed for $10 a share in December, wants its main shareholders to agree to a longer “lock-up” period – usually six months – in which they can’t offload their shares.

It could be trying to avoid the fate of LinkedIn, whose stock dropped 14 per cent in the days after its six month period came to an end in November.

Zynga, which works closely with Facebook, will not receive any proceeds from the offering.