Several big-name mutual funds and other late-stage investors may be facing paper losses of 29% or more on investments they made in social games developer Zynga Inc. earlier this year.
Mutual funds run by Morgan Stanley Investment Management together invested $75 million in Zynga preferred shares in February at a price of about $14 per share, according to Zynga’s disclosure materials filed in connection with its initial public offering planned in two weeks.
Other mutual funds that invested in the same Zynga financing, which raised $490 million, include Fidelity Investments, which invested $82 million, and T. Rowe Price Group Inc., which invested $72 million, fund filings show.
Zynga said Friday that it may price its IPO at $8.50 to $10 a share, which values the company at up to about $7 billion based on its 699.4 million shares outstanding. The valuation would be about $8.9 billion counting outstanding options and warrants…
http://blogs.wsj.com/deals/2011/12/02/zynga-proposed-price-would-leave-funds-underwater/
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