Zynga files for $400M secondary offering

Newsbrief: Farmville house Zynga on Wednesday filed for a $400 million secondary offering, a few months after the social game giant's initial public offering in December. Analyst Michael Pachter with Wedbush said in a note that the "secondary offering has the potential to be a positive, as it addresses the staggering of the expiration dates of lock-up agreements." These "lock-up" periods are when company insiders are restricted from selling any of their shares. Zynga reportedly hopes the move will allow its investors to sell some of their stock, while convincing large shareholders to agree to a longer "lock-up" period that prevents them from selling their stock for the next few months. Zynga's filing today put a dollar amount on a report yesterday regarding the secondary filing.