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Summary:

Zynga’s executives and early investors are set to reap a windfall when the social gaming company goes public. But the hefty payouts have alr…

Mark Pincus, Zynga CEO

Zynga’s executives and early investors are set to reap a windfall when the social gaming company goes public. But the hefty payouts have already begun, starting with founder and CEO Mark Pincus, who sold $110 million worth of shares back to the company in March. That same month, venture capital firms Kleiner Perkins Caufield & Byers, Union Square Ventures, Institutional Venture Partners and Foundry Venture Capital collectively sold $90 million. Union Square Ventures sold an additional $26 million in January.

Pincus sold 7,840,836 shares of Zynga Class B Common stock back the company, earning himself a cool $109,458,070, according to the company’s S-1 filing with the SEC. In addition, since Zynga’s founding in October 2007, Pincus has sold 43,629,310 shares of company stock at prices ranging from $0.42 to $13.96, according to the filing.

Zynga earned a base salary of $300,000 last year, but owns 16 percent of the company. At a valuation of $20 billion, that would make his stake worth $3.2 billion.

Zynga has also purchased back shares from some of the company’s early investors, including:

Entities affiliated with Kleiner Perkins Caufield & Byers
427,682 Class B Common — $5,970,440 — March 2011

Institutional Venture Partners XII, L.P.
210,700 Series B-1 Preferred — $2,941,372 — March 2011
1,395,784 Class B Common — $19,485,145 — March 2011

Entities Affiliated with Union Square Ventures
4,000,000 Series A Preferred — $25,745,860 — January 2011
1,438,602 Series A Preferred — 20,082,883 — March 2011

Foundry Venture Capital 2007, L.P.
1,617,434 Series A Preferred — $22,579,378 — March 2011

Avalon Ventures VIII, LP
1,496,886 Series A-1 Preferred — $20,896,528 — March 2011

  1. 2 years ago, we introduced a new smartphone concept to RIM. We were told by industry insiders that assessed the product that the advertising and marketing possibilities were limitless. We didn’t even get a meeting. We were told to take our concept to the Wireless Carriers. $100. decline in share price since then gives you an idea of the competency of RIM middle management.The top RIM go to market guy says WOW! and you don”‘t even get a meeting!

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  2. People,if you REALLY believed in your company,would you be selling shares BEFORE the I.P.O.? I smell a Pandora type fiasco coming. If suckers go for a “virtual” game company, they better be on the lookout for “virtual” profits. It’s a shame they don’t print stock certificates anymore. Zynga would make great wallpaper.

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