Technology

Zynga Inc CEO Plans To Reinstate Former Executives [REPORT]

Zynga’s Mark Pincus, after acquiring his position as the CEO last week, is now planning to hire back some former executives of the company, says a report from Bloomberg citing a person aware of the plan. Pincus recently replaced the previous chief executive, Don Mattrick, who resigned from his post after working for about 20 months with the game maker.Zynga Inc CEO Plans To Reinstate Former Executives [REPORT]

More departures expected

Among the execs that are going to be called back, is ex-employee Marcus Segal, who is expected to be appointed for a job related to operations in the company. Segal previously worked as the manager of casino-games division before he left the job early last year. In addition to Segal, Pincus is looking to recruit others that have worked with him in the past, says the report

Some of the execs employed by Mattrick may not choose to work with the current CEO, and could leave the company, suggests Arvind Bhatia, an analyst with Sterne Agee Group, who stated, “We see risk of additional departures.”

Delaying the game could impact Zynga

Zynga was founded in 2007 by Pincus, and enjoyed a huge success during its initial years in the market. At one point, the company was the most successful developer of the social games on Facebook. But, since mobile phones became a major platform for social gaming, the company struggled to make any significant mark in the industry. Moreover, Zynga has been confronting a decrease in its revenues for the past few years. Last year, the company recorded a non-GAAP revenue of $694 million, compared to $1.15 billion in 2012.

To find a way back to success, the company’s management has taken several steps, including a plan to launch 6-10 games in the second half of 2015. The social game developer seems to be delaying the launch of its games due to quality issues, but a long wait will most likely disappoint gamers, according to a Pacific Crest analyst, who further opined that Zynga is battling a lack of skilled talent, and need to “reestablish its developer base.”

In pre-market trading today, Zynga shares are down 0.41%, and year to date the stock is down almost 10%.