Its IPO has not been good for Zynga, nor for Facebook. They have been hammered. Not long back Fred Wilson on the East Coast and John Doerr on the West Coast talked of Zynga as the fastest growing company they ever had in their portfolios. I guess there are ups and downs. Right now happens to be a down time. It is not that Zynga's user base has shrunk dramatically. This is more a case of Wall Street looking at cold, hard cash. If you don't have it, you don't have it.
Just like Facebook Zynga is also struggling with mobile.
Zynga COO Said To Lose Product Oversight As Growth Slows
Pincus embarked on the overhaul in early July, at the close of a quarter marked by slowing sales growth and a drop in demand for virtual goods. Schappert, lured away last year from Electronic Arts Inc. (EA) with a pay package worth $42.8 million, has lost support within the company and taken some of the blame for its underperformance ..... “The place is in utter meltdown mode” .... The stock has dropped 72 percent since the market debut. The decline accelerated last week after Zynga reported sales and profit that missed analysts’ predictions. ..... The reorganization was aimed in part at making mobile- software development more of a priority across Zynga
No comments:
Post a Comment