PDA

View Full Version : Zynga closes studios and lays off 160+


SheepFactory
10-24-2012, 06:58 PM
Haven't seen this mentioned. In a classy move Zynga closed a bunch of their studios during the apple event yesterday hoping it would go unnoticed.

J.P. Morgan analyst Doug Anmuth, as reported by the LA Times, estimates that Zynga’s total cash on hand, owned securities, and property are worth $2.46 per share.

At time of writing, Zynga stock is worth $2.35 which means investors consider stock in the company to be worth even less than its actual material wealth; it has no value whatsoever to traders.

Zynga’s stock dropped sharply at the end of last week after it lowered its forecasts; analysts don’t expect any improvement, with Sterne Agee’s Arvind Bhatia predicting “significant” layoffs over the next few months.

Zynga went public in late 2011 and pulled in $1 billion; its stock went for $10 a share before beginning a long slide from which it has never really recovered.

http://www.vg247.com/2012/10/11/zynga-worth-absolutely-nothing-analyst/


Struggling social games giant Zynga is announcing sweeping layoffs and studio closures but it appears the company's engineering office in Seattle was largely spared.

Word of the layoffs surfaced earlier and was confirmed in an internal memo to employees from founder Mark Pincus.

The memo said the company is cutting 5 percent of its full-time workers and closing its studio in Boston. That would be around 160 of its roughly 3,200 positions.

Also proposed is the closure of studios in Japan and the United Kingdom.

The company is phasing out 13 older games and cutting back investment in The Ville, leading to layoffs at its Austin, Texas, studio.

Zynga's Seattle office is relatively safe because it's working on new game genres such as arcade titles, not the older franchises that are being trimmed back.

http://seattletimes.com/html/technologybrierdudleysblog/2019505018_zynga_doing_layoffs_closing_st.html

DePaint
10-25-2012, 12:51 PM
I never saw the appeal of Zynga games to begin with, or why the company was valued so high...

I guess the "Zynga Bubble" was temporary, and is imploding now.

DuttyFoot
10-25-2012, 01:03 PM
J.P. Morgan analyst Doug Anmuth, as reported by the LA Times, estimates that Zynga’s total cash on hand, owned securities, and property are worth $2.46 per share.

At time of writing, Zynga stock is worth $2.35 which means investors consider stock in the company to be worth even less than its actual material wealth; it has no value whatsoever to traders.

Zynga’s stock dropped sharply at the end of last week after it lowered its forecasts; analysts don’t expect any improvement, with Sterne Agee’s Arvind Bhatia predicting “significant” layoffs over the next few months.

Zynga went public in late 2011 and pulled in $1 billion; its stock went for $10 a share before beginning a long slide from which it has never really recovered.

I guess zynga and facebook have something in common.

CGTalk Moderation
10-25-2012, 01:03 PM
This thread has been automatically closed as it remained inactive for 12 months. If you wish to continue the discussion, please create a new thread in the appropriate forum.