Boston, MA 02/13/2014 (wallstreetpr) – Zynga Inc. (NASDAQ:ZNGA) plans to offer up to $126 million in stock as part of its recent acquisition of video game maker NaturalMotion on behalf of the new shareholders that came with the new acquisition. Zynga acquired NaturalMotion last month at a price target of $525 million. As part of the deal the company agreed to issue up to 39.8 million shares and registered 28.2 million shares for sale on behalf of the shareholders. The proposed $125 million offering will constitute a total of 28,178,201 shares
Zynga Inc. (NASDAQ:ZNGA) completed full acquisition of NaturalMotion on February 11, 2014 paving way for the offering. The agreement of the acquisition involved Zynga paying an upfront cash of $391 million and expected to offer 39.8 million shares of its Class A common stock, 11.6 million Shares of the 39.8 million will be issued to continuing employees subject to vesting for a three year period.
Zynga surging in the market
Zynga has turned out to be among the very few stocks in the market with the highest likelihood of offering good returns in 2014. The company in a matter of four weeks has seen its ratings from many analysts firms surge from neutral to buy. More gains are expected to come in the preceding quarters as a result if its acquisition of NaturalMotion. NaturalMotion is expected to positively impact Zynga net revenues in the video game platform.
Positive earnings in the past three quarters have done more than enough to propel the prospect of the company. The positive trend has also caught the eye of many investors who are taking a closer into the company’s stock. The past month alone has seen the company stock move up by 13.1%.
Zynga Inc. (NASDAQ:ZNGA) closed Wednesday trading session higher moving up by 3.67% to close the day at an impressive $4.80 share
