Wednesday, August 29, 2012

For Zynga Inc (NASDAQ:ZNGA) These Are Hard Times Indeed

Mike Verdu, Chief Creative Officer of Zynga Inc (NASDAQ:ZNGA), the company which gave us Farmville, has quit the company.  He had led the company’s creative projects for three years.  His blog post reads -"Being at Zynga in the early days reminded me of how much I love being an entrepreneur.

After a lot of soul-searching, I have decided to go back to my roots and start a new company." He has also expressed his gratitude to Zynga CEO, Mark Pincus for his “leadership, friendship and unwavering support”.

Can ZNGA Recover After The Recent Turmoil? Find Out Here

According to Reuters, sources have said that Verdu plans to set up a mobile gaming company.  Pincus has even promised to invest in the new venture. But Verdu’s exit at this juncture is not helping Zynga which has seen another higher rung executive quit in recent times. 

COO John Schappert had put in his papers just three weeks earlier. There have been unconfirmed reports that several other executives have also left.

 Zynga’s problems however are not limited to these high profile resignations.  The social game maker has been in a downtrend for a few months now.  Lower revenue growth has led to a steep fall in its stock price.  Yesterday, it closed at $3.08, way below its December 2011 IPO price of $10.

 The dismal performance in the second quarter has been attributed to sudden changes in Facebook’s algorithm which has proved detrimental to Zynga.  The other cause is of its own making- a long delay in coming up with new titles.

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