Zynga has reported their Q1 2013 revenues. Unfortunately, Zynga’s revenues declined 18% year-over-year to $264 million. In the same quarter last year, Zynga reported $321 million in revenues. The company is in the midst of investing more resources into mobile platforms. Analysts were expecting Zynga to generate around $209.8 million in revenues at a loss of 4 cents per share. For the quarter, Zynga reported a net income of $4 million.
Mark Pincus Posts
Zynga CEO Mark Pincus announced that the company is going to no longer accept new players for 11 games The company will be moving resources going into those games into more successful games. Pincus has been aiming to cut costs for months. The company laid off many employees back in October.
Zynga Hits Q3 Revenue Of $317 Million, Getting Into Real Casino Gaming, Buying Back $200 Million In Shares
Zynga has reported Q3 revenue of $317 million, which is above the lower range of $300-$305 million that the company was predicting that they would see earlier this month. Bookings were at around $256 million, which is up 11% year-over-year.
Zynga is currently dealing with a rapidly declining stock price due to an over-reliance on Facebook, an insider trade investigation, and a lawsuit from Electronic Arts. This is why it doesn’t shock me that Zynga COO John Schappert has stepped down from the company and the board of directors. Zynga CEO Mark Pincus is now becoming extremely involved in the game development process as he is now having Zynga mobile chief David Ko reporting directly to him.
Zynga has a barrel of issues to deal with including a stock price trading at a loss due to over-reliance on Facebook, an insider trade investigation, and a lawsuit from Electronic Arts. It is only natural for Zynga CEO Mark Pincus to control more of the reins at the company, which is why Zynga’s chief mobile officer David Ko will now be reporting directly to him.
Zynga’s stock is currently trading at $3.09 per share, which is well below their high point of $14.69 in March 2012. Zynga’s market cap back then was over $8 billion and now it is at around $2.27 billion. A couple of days ago, Henry Blodget at BusinessInsider.com wrote an article about insiders at Zynga that cashed out right before the stock crashed.
Last week Pulse2 wrote about how Salesforce.com would be acquiring Buddy Media for over $800 million. It turns out that the acquisition price is for nearly $700 million in cash and shares. The total acquisition number was $689 million. This is almost as much as Salesforce.com generated in sales during the first quarter of this year ($695 million). According to an SEC filing, Salesforce.com considered acquiring Buddy Media for $745 million.
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Zynga recently went public and now they are sitting on a cash pile of $1.8 billion. Zynga CEO Mark Pincus and M&A chief Barry Cottle told Bloomberg that they are looking for the next OMGPOP and they plan to do several big deals of the next few years.
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