This article was published on May 18, 2012

Zynga’s stock drops 13% during Facebook IPO, trading halted (UPDATED)


Zynga’s stock drops 13% during Facebook IPO, trading halted (UPDATED)

During Facebook’s IPO event, which the world is watching, a company closely tied to it called Zynga wasn’t celebrating.

Its stock (ZNGA) dropped over 13% and trading has been halted.

Since Zynga’s gaming business relies heavily on Facebook as a distribution platform, those who are reacting to Facebook’s jump out of the gate could have something to do with the drop. This could also simply be a wave of tech investors dropping one company and moving their money over to Facebook.

In regards to the trade halting, it’s more than likely due to a “circuit breaker” mechanism that’s in place to stop the free-fall of a stock, adopted after the crash in May 2010.

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These pauses in trading usually last about five to ten minutes, but Zynga has passed that threshold at this point as it was officially halted at 11:37AM ET.

UPDATE: Zynga trading resumed at 12:29PM ET at $7.80, but quickly halted again.

UPDATE 2: Zynga has started trading again and sits at $7.49 as of 1:42PM ET.

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