By Everdeen Mason
Zynga Inc.filed to offer up to $126 million in stock on behalf
of some of the new shareholders it obtained through its recent
purchase of mobile videogame maker NaturalMotion Ltd.
The company said last month that it would pay more than $525
million in cash and stock to buy NaturalMotion, a developer of
videogames and animation technology.
Zynga agreed to issue 39.8 million shares as part of that deal
and promptly registered 28.2 million for sale on behalf of the
shareholders on Wednesday.
Balderton Capital II LP, NaturalMotion's earliest investor, is
offering up to 7.6 million shares, while Benchmark Capital Partners
VII LP. is offering 6.4 million. Other selling shareholders include
the Chancellor, Masters and Scholars of the University of Oxford,
C.A.S. Investments LLC and Nvidia Corp.
The acquisition of NaturalMotion is the San Francisco-based
Zynga's largest acquisition to date. Zynga made its name with
titles like "FarmVille." Most of the games were aimed at casual
audiences, with themes such as building a farm, playing word games
or simulating a round of poker. Zynga typically doesn't charge for
its games but sells virtual items, such as special animals for a
digital zoo or enhanced capabilities in a game.
U.K.-based NaturalMotion, meanwhile, makes mobile games,
including the automotive "CSR Racing" and "Clumsy Ninja," in which
players try to train virtual martial-arts masters.
When Zynga went public in late 2011, most of its games were
designed for Facebook Inc.'s social network. But within months, the
company's growth slowed as players moved from Web-based games to
those on mobile devices.
As Zynga's struggles continue, the company recently disclosed
plans to cut its workforce for the third time in two years while
also reporting a narrower fourth-quarter loss.
Write to Everdeen Mason at everdeen.mason@wsj.com
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