As discovered earlier today by the crack team at Footnoted.org, just two minutes after the social games company filed what we thought was its newest 8-K – you know, the one whose second-quarter earnings numbers sent the stock into freefall – it filed another 8-K.
No one noticed, naturally. They were too busy dissecting the earnings numbers and organizing their thoughts about how, exactly, to dump on the company.
But common shareholders, in particular, should definitely take note now. As Footnoted reports: “Pincus now controls just over 50% of the total voting power as of July 24. It’s not entirely clear when, but apparently investors in Zynga Class B stock sold their shares to Pincus. Since Class B shares are entitled to 7 votes (as opposed to 1 vote for Class A shares), that pushed Pincus over the 50% hurdle.”
That’s a huge deal. As industry watchers might already know, Pincus controlled an exceptionally high percentage of the company’s voting power going into the company’s IPO last December, owing to its multi-class structure. Though at the time, he owned just 16 percent of the company’s class B shares, they gave give him a whopping 70 votes per stock, which put 38.5 percent of Zynga’s voting power in his hands.
Now, with 50.15 percent of the controlling power, Pincus is virtually untouchable.
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