By Dow Jones Business News,
February 12, 2014, 10:42:00 AM EDT
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 email@example.com
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