Having cut projections once again, Zynga is currently trading at $2.32 a share for a market cap of $1.76 billion. With around a billion and a half dollars of cash on its books, however, Zynga’s enterprise value is currently $223 million, five million less than the $228 million it paid for its headquarters building at 650 Townsend in San Francisco earlier this year.
As we wrote in July when we broke the news of Pincus’ Pacific Heights purchase:
While Zynga is currently trading at $5.57 per share, 44 percent under its IPO price of $10 per share, a few insiders including CEO Mark Pincus managed to dump over $500 million worth of Zynga stock at $12 per share in a secondary offering, the proceeds of which went into the insiders’ pockets rather than the coffers of the company.
If the thought of Pincus having bought a home with its fortress-like qualities and security in mind seemed like a stretch, perhaps it seems like foresight now.