Bloomberg News

Morgan Stanley Buys Zynga, LinkedIn Shares in Fourth Quarter

January 09, 2012

Jan. 8 (Bloomberg) -- Morgan Stanley, the bank that underwrote the initial public offerings of Zynga Inc. and LinkedIn Corp. last year, bought shares of both social-media companies in the fourth quarter.

The New York-based firm now owns 15.7 million Zynga shares and increased its LinkedIn stake by 81 percent to 3.98 million shares, according to separate filings on Jan. 6. The purchases were made by Morgan Stanley Investment Management, according to the filing.

Morgan Stanley’s stake in Zynga, a social-gaming company, is worth about $138 million based on the Jan. 6 closing price of $8.81. According to the prospectus, Morgan Stanley agreed to buy the stock at the IPO price of $10 a share. Shares purchased at that time would have lost about 12 percent of their value.

Zynga held its IPO last month, while LinkedIn went public in May. As part of its underwriting agreements with the companies, Morgan Stanley agreed to buy shares in each of the offerings. The shares referenced in the Jan. 6 filings were purchased independent of those agreements.

Pen Pendleton, a spokesman for Morgan Stanley, declined to comment.

Morgan Stanley also managed the IPOs of music-streaming service Pandora Media Inc., vacation-rental site HomeAway Inc. and daily-deal provider Groupon Inc.

Morgan Stanley’s LinkedIn stake is worth $255.5 million. Morgan Stanley didn’t say how much it paid for the 1.78 million shares it purchased most recently. LinkedIn, the world’s biggest professional-networking website, has gained 43 percent since its IPO in May.

--With assistance from Tom Giles in San Francisco. Editors: Tom Giles, Nick Turner

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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