Zynga's big debut on the stock market seems to be on everyone's mind this week -- and not necessarily in a good way -- as industry watchers come out of the woodwork to talk about the not-so-perfect state of the company behind games such as FarmVille, CityVille and Words with Friends.
First, there are several reports on how Zynga's games are not doing so hot. Cowen and Company analysts say that Zynga's new Facebook game CastleVille might be attracting lots of players, but at the expense of its other big Facebook games. The report says CastleVille has tied with FarmVille as the second most popular game on Facebook, with 6.9 million daily users each, but that November is still an overall "disappointment" for Zynga, because the company's other big Facebook games saw a collective loss of 3.8 million daily players in the past month. Another article in Businessweek talks about how the recently launched Mafia Wars 2 is failing to meet expectations, losing 900K daily active users in roughly a month.
In addition to a flagging player population, it seems like Zynga and its CEO aren't exactly winning friends. Venture Beat points out that Zynga CEO's Mark Pincus' approval rating is a low 46% and another story in the New York Times says long hours and grueling deadlines has grumbling employees counting down the days until they can cash out their stock and then jump ship. The same Times article talks about how Zynga's not-so-friendly culture could be a reason that Angry Birds creator Rovio turned down Zynga's offer of $2.5 billion in cash and stock this summer.
With a possible IPO in December, it sounds like Zynga's going to have to be on its best behavior to get onto Santa's (and investors') nice list this year.
Hiển thị các bài đăng có nhãn zynga ipo. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn zynga ipo. Hiển thị tất cả bài đăng
Thứ Sáu, 9 tháng 12, 2011
Thứ Sáu, 30 tháng 9, 2011
Zynga profits plummet 90 percent, raises questions about imminent IPO
Will the big show still go on? That's what many wonder, as Zynga just revealed in an updated regulatory filing that its profits dipped by 90 percent in the June quarter, thanks to increased spending and a lack of major game releases earlier this year, Reuters reports. According to the news service, this raises questions as to whether the company can sustain growth ahead of its long-awaited IPO (initial public offering).
Zynga's net income took a nose dive to $1.4 million from $14 million a year earlier, and its net profit plummeted over 90 percent in three months from $16.8 million in March of this year. Reuters chalks this up to the fact that the filing shows that the FarmVille maker's expenses rose $149 million compared to a year earlier, and $59 million alone from the previous financial quarter.
We'd imagine a major chunk of those expenses are thanks to the 14 companies Zynga gobbled up in the past year. It's also worth noting that the developer didn't really release any major Facebook games in 2011 prior to Empires & Allies. (And no, we're not counting FarmVille English Countryside.) Since then, however, the company has been on a frenzy, launching three more Facebook games this summer: Words With Friends, Pioneer Trail and recently Adventure World.
This news speaks volumes to the fact that Zynga has reached a point where it constantly needs to produce in order to sustain its meteoric growth, and more importantly for them right now, the faith of investors. Since the company's last filing, Zynga conducted a third-party analysis that estimated the probability of an IPO at 75 percent. This is down from the 80 percent probability reported in Zynga's previous filing.
In other words, it looks like the anticipated Zynga IPO could be delayed, just as previous reports suggested, to wait for improved market conditions. However, EA is gaining on the company with The Sims Social, and fast. According to AppData, EA and Playfish's game has just about 1.6 million fewer daily players than CityVille's 12.9 million.
Do you think Zynga has anything to worry about, given the news? Would you ever invest in Zynga if given the chance? Sound off in the comments. 1 Comment
Zynga's net income took a nose dive to $1.4 million from $14 million a year earlier, and its net profit plummeted over 90 percent in three months from $16.8 million in March of this year. Reuters chalks this up to the fact that the filing shows that the FarmVille maker's expenses rose $149 million compared to a year earlier, and $59 million alone from the previous financial quarter.
We'd imagine a major chunk of those expenses are thanks to the 14 companies Zynga gobbled up in the past year. It's also worth noting that the developer didn't really release any major Facebook games in 2011 prior to Empires & Allies. (And no, we're not counting FarmVille English Countryside.) Since then, however, the company has been on a frenzy, launching three more Facebook games this summer: Words With Friends, Pioneer Trail and recently Adventure World.
This news speaks volumes to the fact that Zynga has reached a point where it constantly needs to produce in order to sustain its meteoric growth, and more importantly for them right now, the faith of investors. Since the company's last filing, Zynga conducted a third-party analysis that estimated the probability of an IPO at 75 percent. This is down from the 80 percent probability reported in Zynga's previous filing.
In other words, it looks like the anticipated Zynga IPO could be delayed, just as previous reports suggested, to wait for improved market conditions. However, EA is gaining on the company with The Sims Social, and fast. According to AppData, EA and Playfish's game has just about 1.6 million fewer daily players than CityVille's 12.9 million.
Do you think Zynga has anything to worry about, given the news? Would you ever invest in Zynga if given the chance? Sound off in the comments. 1 Comment
Zynga profits plummet 90 percent, raises questions about imminent IPO
Will the big show still go on? That's what many wonder, as Zynga just revealed in an updated regulatory filing that its profits dipped by 90 percent in the June quarter, thanks to increased spending and a lack of major game releases earlier this year, Reuters reports. According to the news service, this raises questions as to whether the company can sustain growth ahead of its long-awaited IPO (initial public offering).
Zynga's net income took a nose dive to $1.4 million from $14 million a year earlier, and its net profit plummeted over 90 percent in three months from $16.8 million in March of this year. Reuters chalks this up to the fact that the filing shows that the FarmVille maker's expenses rose $149 million compared to a year earlier, and $59 million alone from the previous financial quarter.
We'd imagine a major chunk of those expenses are thanks to the 14 companies Zynga gobbled up in the past year. It's also worth noting that the developer didn't really release any major Facebook games in 2011 prior to Empires & Allies. (And no, we're not counting FarmVille English Countryside.) Since then, however, the company has been on a frenzy, launching three more Facebook games this summer: Words With Friends, Pioneer Trail and recently Adventure World.
This news speaks volumes to the fact that Zynga has reached a point where it constantly needs to produce in order to sustain its meteoric growth, and more importantly for them right now, the faith of investors. Since the company's last filing, Zynga conducted a third-party analysis that estimated the probability of an IPO at 75 percent. This is down from the 80 percent probability reported in Zynga's previous filing.
In other words, it looks like the anticipated Zynga IPO could be delayed, just as previous reports suggested, to wait for improved market conditions. However, EA is gaining on the company with The Sims Social, and fast. According to AppData, EA and Playfish's game has just about 1.6 million fewer daily players than CityVille's 12.9 million.
Do you think Zynga has anything to worry about, given the news? Would you ever invest in Zynga if given the chance? Sound off in the comments. 1 Comment
Zynga's net income took a nose dive to $1.4 million from $14 million a year earlier, and its net profit plummeted over 90 percent in three months from $16.8 million in March of this year. Reuters chalks this up to the fact that the filing shows that the FarmVille maker's expenses rose $149 million compared to a year earlier, and $59 million alone from the previous financial quarter.
We'd imagine a major chunk of those expenses are thanks to the 14 companies Zynga gobbled up in the past year. It's also worth noting that the developer didn't really release any major Facebook games in 2011 prior to Empires & Allies. (And no, we're not counting FarmVille English Countryside.) Since then, however, the company has been on a frenzy, launching three more Facebook games this summer: Words With Friends, Pioneer Trail and recently Adventure World.
This news speaks volumes to the fact that Zynga has reached a point where it constantly needs to produce in order to sustain its meteoric growth, and more importantly for them right now, the faith of investors. Since the company's last filing, Zynga conducted a third-party analysis that estimated the probability of an IPO at 75 percent. This is down from the 80 percent probability reported in Zynga's previous filing.
In other words, it looks like the anticipated Zynga IPO could be delayed, just as previous reports suggested, to wait for improved market conditions. However, EA is gaining on the company with The Sims Social, and fast. According to AppData, EA and Playfish's game has just about 1.6 million fewer daily players than CityVille's 12.9 million.
Do you think Zynga has anything to worry about, given the news? Would you ever invest in Zynga if given the chance? Sound off in the comments. 1 Comment
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