QUOTE AND NEWS
Forbes  Mar 3  Comment 
We think the industry dynamics are clearly unfavorable for Zynga, as many of the Porter Five Forces indicate a high level of threat. Although already intense, the competitive rivalry within the industry could further intensify in the future due to...
Forbes  Feb 28  Comment 
Shuttle bus drivers for five tech companies -- eBay, Apple, Yahoo, Genentech and Zynga -- voted Friday afternoon to be represented by Teamsters Local 853, the union said, part of a larger push toward unionizing Silicon Valley's legions of...
Forbes  Feb 27  Comment 
Bottom line: NetEase’s new California R&D center could become an important hub for its future global growth, while Zynga’s China pull-out reflects the extreme difficulties foreign firms face in the local gaming market.
Benzinga  Feb 25  Comment 
Renowned investor and founder of Gotham Funds Joel Greenblatt was on CNBC recently to discuss the stocks that he perceives to be overvalued and on his shorting list, including Zynga Inc (NASDAQ: ZNGA), Groupon Inc (NASDAQ: GRPN) and Tesla Motors...
TheStreet.com  Feb 19  Comment 
NEW YORK ( The Deal) -- For shareholders of game developer Zynga , it looks 2015 will be a long, slow year. CEO Don Mattrick let some air out of expectations earlier in February, when he prepared shareholders for losses and declining...
Forbes  Feb 18  Comment 
Notwithstanding the company’s plans to launch around 6-10 new games in highly popular game categories during the year, we think the company must come with more unique games that are based on original content to reinvigorate its growth. While the...




 
TOP CONTRIBUTORS

Zynga (NASDAQ:ZNGA) develops social game to be played on there internet. In particular, Zynga has focused on developing games to be played on Facebook, the social network platform. The games are meant to be easily accessed and social in nature. Because the games are deployed online, updates and changes can be made continuously. Rather than charging consumers for individual use, Zynga offers its games for free. Instead, the company makes money by advertising and selling virtual goods through the games.[1]


Business Overview

For the full year 2010, Zynga report a total revenue of $597M. This was a 393% increase over the $121M reported for 2009. The company's net income for 2010 was $91M. The previous year, Zynga reported a net loss of $53M.[2]


New Updates

The company's initial public offering of stock on the NASDAQ occurred on December 15, 2011. The company offered 100M shares each for $10. This was at the high end of the $8.5-$10 price range. The deal raised a total of $1B. The lead managers of the deal were Morgan Stanley and Goldman.[3]

Trends & Forces

Reliance on Facebook

While Zynga plans to create social games in general, the company has historically heavily focused on Facebook. This relationship works well for Facebook as Zynga's games encourage individuals to pass more time on the site. However, if Facebook decides to enter the game space, the two would become direct competitors. This is problematic for Zynga as its games run of Facebook's platform. Furthermore, even if Zynga does diversify to other social platforms, it will still be reliant on the platforms cooperation.[4]

  1. ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Overview" pp.1-2
  2. ZNGA S-1/A 2011 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pp.9-10
  3. Renaissance Capital - IPO Home "Zynga prices high-profile deal at $10 in largest tech IPO since Google" 15 Dec 2011
  4. Seeking Alpha "7 Reasons to Ignore the Zynga IPO Hype" 14 Dec 2011
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