Zynga chief executive Mark Pincus and other early investors sold more than $233 million worth in stock back to the company in both January and March of this year, according to the company’s IPO filing today.
Pincus sold $109.5 million in stock, while chief technology officer Cadir Lee and co-president of games Michael Verdu sold nearly $3 million in stock each. Early investors Kleiner Perkins Caufield & Byers sold nearly $6 million and Union Square Ventures sold back close to $46 million in stock.
Zynga’s consolidated statement of cash flows for 2011 says the company repurchased $261 million in stock, so there’s a nearly $30 million discrepancy here. Perhaps other early employees, who didn’t own enough of the company to be listed in the table above, also sold back some shares.
With the recent string of public filings for consumer Internet companies, it’s become relatively common for early employees and investors of late-stage companies to take money off the table prior to the IPO. Zynga’s case is not nearly as extreme as Groupon’s, however, which showed that $810 million of the $946 million the company raised in its most recent round was paid out to early investors.
The same part of the IPO filing shows other interesting oddities too. Zynga loaned Verdu $800,000 in April of last year. Also, the company is paying Pincus’ sister, Laura Pincus Hartman, $5,000 per month for consulting services on Zynga.org, its charitable arm.
However, Zynga says in its filing that the $1 billion it is looking to raise will go towards expansion, not cashing out investors.