Mark Pincus, CEO of Zynga Inc (NASDAQ:ZNGA) was dropped from the Forbes list of billionaires this year due to a decline in the stock value of the Game Company. The stock of Zynga suffered the greatest due to the IPO of Facebook Inc (NASDAQ:FB), as the game of Zynga Inc (NASDAQ:ZNGA) are largely played on the largest social networking site. Also, many executives left Zynga last year, which affected the company to a great extent. The CEO couldn’t make it to the list as the value of his stock reduced to almost a third less than it was a year ago.
Facebook Inc (NASDAQ:FB) CEO, Mark Zuckerberg also dropped by 31 spots in the list of billionaires this year. Larry Ellison of Oracle Corporation (NASDAQ:ORCL) was fifth on the list. The stock of Zynga was trading at $3.61 per share on Monday. The 52 week high for the stock was $14.48 per share.
After 13 years at the head of KG Funds, the firm's founder, Ike Kier, has decided to step down and return outside capital to investors. The firm manages around $613 million of assets across its funds and client accounts. According to a copy of the firm's latest investor update, Kier has decided to step down Read More
The Game maker posted a net loss of $48.6 million, or 6 cents per share for the latest quarter. The loss was, however, less compared to last year’s loss of $435 million, or $1.22 in the same period. The earnings came in at 1 cent per share, not including certain items, there was a decline from 5 cents a share in the corresponding quarter of the previous year. Revenues were down 15 percent to $261 million from $307 million in the previous year.
Zynga Inc (NASDAQ:ZNGA) is forecasting a revenue of $255 million to $265 million for the first quarter. The loss is expected to be between 2 cents to 4 cents per share. The game maker is toiling hard to increase its profitability. The company slashed staff and stated stock buybacks worth $200 million in October.
The new venture of Zynga Inc (NASDAQ:ZNGA), online real money gambling, is also facing hurdles because the existing rules and norms are in favor of existing casinos and hardly favor Zynga. Casinos like Caesars Entertainment Corp (NASDAQ:CZR) and MGM Resorts International (NYSE:MGM) are the big casino favored by the norms at present. The other small players in the Casino might feel the necessity to enter in partnership with these Casino majors.
“I can’t tell you what games will be allowed or what the tax rates are going to be,” said Skip Bronson, chairman of U.S. Digital Gaming, a Beverly Hills, California-based firm looking to enter the market. “But I can guarantee in all the states, it’s the existing stakeholders that will have their way.”