The founder of Zynga (and current chief product officer and chairman) reportedly asked President Obama to pardon Snowden at a face to face meeting yesterday. The president rejected the suggestion, according to CNN.
Game developers may not be lining up at Zynga’s doors after a cost restructuring that resulted in approximately 150 layoffs earlier this week, but in business terms, are things finally on the upswing?
I’m about to say something that’s likely to make me unpopular around these parts: Zynga may actually know what it’s doing.
I know… I know… But after months of seemingly drifting aimlessly and taking no steps to correct its ongoing free-fall in the markets, the company has made a few intelligent moves this week that have finally turned heads – and it’s done that as its biggest partner has tried to bury it.
A little over a week ago, Zynga CEO Pincus retweeted an analysis piece suggesting the company should abandon its efforts as a publicly traded entity and consider going private. The suggestion comes less than a year after Zynga’s highly publicized IPO.
It’s a pretty safe assumption that anyone who shelled out for Zynga stock when the company went public — or even in the five months that followed — isn’t real happy these days.
After reaching a high of nearly $16 per share, the stock now dwells in the cellar, closing Thursday at $3.25. (And, if it weren’t for JMP Securities’ bullish words when it initiated coverage on the company Wednesday, it would almost certainly be even lower.)
At the company’s Zynga Unleashed press event Tuesday, CEO Mark Pincus unveiled a number of new titles and initiatives meant to showcase the company’s independence. Chief among those was a formal sequel to its breakout hit Farmville and a new entry in its popular “With Friends” line of mobile games.
Shares of the social media site’s close ally Zynga briefly hit an all time low Friday and closed down precipitously. Editor at large Chris Morris looks at why investors fled – and what might lie ahead.
Through sheer force of will, Facebook managed to avoid closing at below its IPO price during its first day of trading on Wall Street. Unfortunately, that didn’t help its allies.
Zynga saw its stock lose roughly 14 percent of its value Friday – after briefly dropping to an all time low. Shares of the company closed at $7.12 following what can only be called an insane day of trading.
[Though Zynga’s upcoming $1 billion IPO is lower than expected based on previous reports and market cap valuations, Gamasutra’s Chris Morris explains why the company is playing it smart with its low share prices.]
Five months after announcing its intention to go public, Zynga is about to make the splash, but it’s doing so with a much smaller splash than most people expected back in July.
Back then, when the market was teasing investors with a head fake of stability, analysts, and the financial media (along with most of the gaming industry) expected the company to raise between $1.5 and $2 billion – with an accompanying market cap of $15 billion and $20 billion. But when shares begin trading Dec. 16, the company will only seek $1 billion – and have a maximum market cap of $7 billion.
The founder and CEO of the social games juggernaut stands to make an insane amount of money when trading of the company begins on Wall St. (likely 3-4 months from now). He’s already bucks up from selling 7.8 million shares back to the company in March for $100 million – and he’s still holding another 105 million shares in his portfolio. It’s nothing short of a massive payoff for his four-year old company.
The company on Friday filed an S-1 form with the Securities and Exchange Commission, announcing plans to raise $1 billion through publicly traded shares. That wasn’t the interesting part, though. The really fascinating stuff was in the details.