Zynga Inc. (ZNGA) said Friday it received a notice from Nasdaq
saying it wasn't in compliance with its listing rules after two
directors recently left the videogame company's board.
Nasdaq listing rules require that the company's board be
comprised of a majority of independent directors, Zynga said in a
regulatory filing.
LinkedIn co-founder Reid Hoffman and DreamWorks Animation Chief
Executive Jeffrey Katzenberg decided not to run for reelection to
Zynga's board, reducing the board's size to seven, Zynga said in an
April regulatory filing. The company said at the time it planned to
increase its board size after it had identified and elected new
board members.
Zynga said Friday that its board is actively recruiting
potential candidates, and that it expects to regain compliance with
the listing rule in the coming months. Zynga has until July 27 to
submit a plan to Nasdaq, after which Nasdaq may grant an extension
of up to Dec. 9 to regain compliance.
Write to Anne Pallivathuckal at anne.pallivathuckal@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires