Groupon Cubicle Talk: Did You Unload All Your Stock, or Just Enough to Pay for Lunch Today?
Maybe Groupon (GRPN) chairman Eric Lefkofsky, who only looks at its stock price on Friday afternoons, doesn’t need to. And neither does Mark Pincus, chairman over at Zynga (ZNGA). After all, both men may already know why their shares hit new lows this week: lock-ups expired.
As Marketwatch points out, both companies saw huge slugs of stock become eligible to trade six weeks ago. Investors who bought -- or employees who got equity -- had to hold, per a lock-up agreement. When that expired, they were free to flee.
Zynga had 325 million shares become eligible to sell. At Groupon, 600 million shares could hit the market. And it’s not over yet: another 150 million shares of Zynga will emerge from lock-up on August 16. The story also suggests to watch out for similar action at Facebook (FB), whose lock-ups will expire before yearend.
Filed under: Company News