Zynga Inc (ZNGA)

[WannaBeFortuneSeller]

well with reverse split you can reduce the number of shares in the market. But if someone has less number of shares, then company has to dole out cash to those whom it cannot give reverse splitted shares. But it is entirely upto the company on what price it decides to buyback those shares. I dont think majority of people who have bought at $10 IPO price are going to sell off to Mark at current price levels and will thus prevent ZNGA from going private. Remember ZNGA can go private only if it can reduce the number of shares in the market but most analyst do not think it is feasible that people will let ZNGA buyback at current levels. ZNGA atleast has to offer $5+ to have any sort of momentum of buyback and going private.

I found this link at SEC.

http://www.sec.gov/answers/gopriv.htm


I hope SEC would have some stronger ruleset to prohibit such notorious activities by companies who loot people' money and then consider going private.