Mattrick's restructuring splits Zynga into 3 divisions


New Zynga (ZNGA) CEO Don Mattrick has outlined his big restructuring in a company memo. As previously reported, COO David Ko, CTO Cadir Lee, and HR chief Colleen McCreary are leaving.

In a move that faintly resembles ex-employer Microsoft's big reorg, Mattrick is splitting Zynga's operations into 3 divisions: Functional; Studios; and Tech, Live Ops, and Publishing. The divisions will have a combined 13 managers, all of whom will directly report to Mattrick.

Within the Studios unit, former President of Games Steve Chiang is now in charge of most of Zynga's 'Ville titles, and former chief revenue officer Barry Cottle is is now in charge of social gambling titles such as Zynga Poker. The FarmVille games remain the responsibility of Tim LeTourneau.

The COO position is gone, and the CTO position is being split into two roles. HR exec Meg Makalou has been named VP of Human Resources, which effectively replaces McCreary's position. CFO Mark Vranesh's title is unchanged.

Investors are taking the shakeup in stride, ZNGA -0.3% AH.

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Comments (9)
  • Continental Kid
    , contributor
    Comments (238) | Send Message
     
    Wow....well something will come of this... out with old in with the...?....I am hopefull ....a shake up is needed...the current course was a slow sink.....the new course will be a fast sink or fast rise.....I am long but cautious ...in at 2.99....but not married to the position...finger crossed....best of luck to all
    13 Aug 2013, 08:19 PM Reply Like
  • don55
    , contributor
    Comments (117) | Send Message
     
    Any restructuring on a poorly managed company is a plus when the stock is trading dirt cheap.. if this was expensive it would be taken badly... I don't see this as significant news., but not a negative
    13 Aug 2013, 08:49 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3942) | Send Message
     
    Don - You're right. it's probably not significant yet, but wonder how much split up can be done when you've already let go a whole bunch of your management, game designers and programmers. Most all upper management is new. Just more headwinds to face now. When it's said that "most investors are taking this move in stride," I don't think they have any other choice. Those that are already invested have to ride it out or bite the losing bullet. Personally, I think we're gonna see some $2.60 ZNGA real soon.
    13 Aug 2013, 09:25 PM Reply Like
  • sfphoto
    , contributor
    Comments (682) | Send Message
     
    "I think we're gonna see some $2.60 ZNGA real soon"

     

    I sure hope so as this is what we've all been waiting for.
    14 Aug 2013, 07:48 PM Reply Like
  • growingwildgs
    , contributor
    Comments (107) | Send Message
     
    It is rare when a new person takes the helm they don't make changes. I believe the new CEO Don Mattrick has the experience to make ZYNGA work. I am long ZYNGA after reading the bios of the key people and what they have accomplished in the past.
    13 Aug 2013, 08:49 PM Reply Like
  • sfphoto
    , contributor
    Comments (682) | Send Message
     
    Don Mattrick has shown that ZNGA needs discipline to stay focused on its social gaming franchise. More layoffs is needed to cut down ZNGA's size which is too bloated. Until a clear turnaround roadmap emerges, ZNGA's stock could fall to the mid-2s again.
    13 Aug 2013, 09:19 PM Reply Like
  • RiskIsMoney
    , contributor
    Comments (2) | Send Message
     
    well... I bought 100 call options before the close bell... Its gonna be interesting tomorrow at open time!
    13 Aug 2013, 09:31 PM Reply Like
  • inkyx
    , contributor
    Comments (523) | Send Message
     
    Great news. Don is refocusing the company. Give an accomplished man the time to do his job. It will pay off. If this goes to 2.50, I'm in for more shares. Dirt cheap.
    14 Aug 2013, 12:14 AM Reply Like
  • Tvaddic
    , contributor
    Comments (286) | Send Message
     
    These people have a great excuse to leave Zynga.
    14 Aug 2013, 03:41 AM Reply Like
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