Thursday, August 9, 2012

Zynga Inc (NASDAQ:ZNGA) Turns Higher Above $3 Mark After Gapping Down

Shares of Zynga Inc (NASDAQ:ZNGA) recovered sharply from session low and was recent up 3.12% to $3.04, recovering from 5% loss in early session. The stock has gained about 8% from session low of $2.79.

Game developer Zynga's Chief Operating Officer John Schappert, left the company after only a year and half at the helm.

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On July 31, Schappert had been stripped of his role overseeing game development, as part of a reorganisation strategy to revive growth and make more money from mobile services.

On Wednesday Zynga said in a regulatory filing that the COO's exit would be immediately effective. He had joined the company from competitor Electronic Arts.

"John has made significant contributions to the games industry throughout his career and we appreciate all that he has done for Zynga," said CEO Mark Pincus in a statement. "John leaves as a friend of the company and we wish him all the best."

There were reports at the time of the reorganisation last week that the management had not been happy and there had been disagreements with Zynga over certain decisions taken by Schappert. However Zynga declined to comment on it.

Zynga is the maker of the popular Farmville and other games many of which are played on Facebook and a major revenue generator for the social networking site.

The company has already integrated its web and mobile units so that Chief Mobile Officer David Ko and Steve Chiang, executive vice president of games, will oversee Zynga's game divisions and report directly to Pincus.

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Founder and CEO Pincus is becoming more hands-on as the company has been floundering of late with its games failing to find the kind of traction that it had expected.

its stock has also dipped more than 70 percent from its IPO offering last year and its outlook seems rather bleak at the moment.

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