After trading as high as $13.55 following its acquisition of Draw Something developer OMGPOP,...

After trading as high as $13.55 following its acquisition of Draw Something developer OMGPOP, Zynga (ZNGA) has fallen nearly 30%. One major factor could be concerns about declining activity for several of its top games in a competitive Facebook game market. According to AppData, Draw Something, CastleVille, FarmVille, and Hidden Chronicles have all seen daily users fall in recent weeks (I, II, III, IV). Only Texas HoldEm Poker is bucking the tide.
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Comments (4)
  • sicktick
    , contributor
    Comments (5) | Send Message
    The article is certainly accurate in the loss of users.Many of the people Zynga has been losing are the 3% of users that were willing to buy virtual goods. I was one of those. I no longer play on Facebook or even use it. The games became increasingly $$ oriented to the extreme. Most couldn't keep up and felt bad enough to give up. Some of us found other outlets to buy goods to keep up. the rest, including myself just had enough and dropped out. The worst offender....FarmVille. sorry Zynga, you priced yourself right out of devoted followers.
    20 Apr 2012, 02:31 PM Reply Like
  • Mbrillo1
    , contributor
    Comments (400) | Send Message
    Having been heavily involved in Zynga since its issue I have the following comments:
    This past week has seen Zynga trade down each day.
    The major reason: GREED.
    The initial offer consisted of approximately 115 million shares at $10 placing a value of $7 billion on the company. This was the largest US based internet offering since Google in 2004. Initially, the stock faltered selling down to $8.00 before rallying to almost $16.
    Then came the gluttony!
    Under the auspices of managing the lock-up period and attempting to avoid a "dumping of stock upon the market", Zynga had a secondary of 43 million additional shares . This offering, all selling stockholders, was simply a divestiture of stock- an insiders payoff. Mark Pincus was joined by Google, SilverLake, Union Square, Reid Hoffman , 3 board members, COO John Schappert, and CFO Dave Wehner .
    It was more than the market could bear.
    In increasing the public float, abetted by sobering news about the popularity of some of its leading games, the eyepopping price that the company paid for OMGPop ($210 million), the stock has just collapsed.
    Zynga is run by one of the smartest, people in the social games industry. Mark Pincus is a genius of sorts, knows his industry, and... bottom line will know just the moves to pull his chestnuts out of the fire profitably.
    Mark Pincus has made many enemies, people who will make it harder and more costly for Zynga to pull off the deals that will make his company a successful one. Pincus will prevail, and someday soon the company will pull off a merger, an acquisition, a new concept, whatever it takes for Zynga's stock to take off once again allowing Pincus to become wealthier then he is today.
    It is the nature of the beast.
    21 Apr 2012, 01:26 AM Reply Like
  • Mbrillo1
    , contributor
    Comments (400) | Send Message
    Correction to my comment: Insiders sold 49 million shares rather than 43 million (According to John Shinal of Dow Jones) 4/24/2012.
    23 Apr 2012, 10:00 AM Reply Like
  • bustabubble
    , contributor
    Comments (66) | Send Message
    i think its time to buy !!!!! kiddies!!!!!!8.75 hmmmmm
    23 Apr 2012, 03:11 PM Reply Like
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