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Old 10-10-2012, 08:01 PM   #1
Anenome
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Thumbs up Farmville Creator Zynga Circles the Drain



So, Zynga's business is officially worth less than nothing, according to Wall Street.

Quote:
Zynga stock is now trading at less than the value of its cash, securities and real estate holdings.

The 16% drop in Zynga's already battered stock price came after the company warned Thursday that its 2012 financial performance would be below previous projections and that it is taking a write-down of $85 million to $95 million on its acquisition of "Draw Something" game maker OMGPOP in March for $180 million.

That disclosure was quickly followed by a series of negative reports from analysts.
(via the LA Times)

Seems Facebook and anyone connected to them is a getting beat like a bastard son these days. Not that I'm complaining.


Last edited by randir14; 10-10-2012 at 08:30 PM..
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Old 10-10-2012, 09:09 PM   #2
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and no one was surprised and no one will be upset.

Really way to many of these little companies are getting purchased for ridiculous amounts of money. $180 million for OMGPOP, really... can anyone name 1 other game that they make of the top of their head thats not draw something?
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Old 10-10-2012, 09:27 PM   #3
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The thing that really sent me over the edge is the new "promote" feature on facebook. Where you pay real money to have your status update "promoted" on your friends/likers facebook timelines... I'm working on making a full Google+ switch over, just trying to get my family on board...
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Old 10-10-2012, 09:29 PM   #4
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That's what happens when you get away from your core business model. The old zynga would have just copied draw something and called it drawville.
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Old 10-10-2012, 10:53 PM   #5
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Is Facebook going back to being used for its original purpose?

Cuz that would be nice.
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Old 10-10-2012, 10:59 PM   #6
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Time to buy maybe. It can't stay this bad forever! Where's Ecktodragon when you need him?
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Old 10-10-2012, 11:35 PM   #7
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Time to buy maybe. It can't stay this bad forever! Where's Ecktodragon when you need him?
Thank you, guy from 1929 :P
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Old 10-11-2012, 12:46 AM   #8
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Studio closure and layoffs are sure to be next. Not even Pincus would invest more in this dog.
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Old 10-11-2012, 02:24 AM   #9
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Thank you, guy from 1929 :P
If the stock is trading for less then the value of their capital and investments, minus debt, then it's the perfect time to buy.
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Old 10-11-2012, 03:41 AM   #10
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Was only a matter of time until this dot.com bubble imploded.
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Old 10-11-2012, 04:48 AM   #11
DeadPixel
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I think FarmVille was actually a fun game at first, but the constant notifications and nagging screens ruined it. I realize that was the reason the game exploded in popularity so fast, but ultimately that's what also killed it. No one cares for yet another <name>Ville clone these days, they are all the same.

I have no problem with time based leveling though, even large MMOs do it like EVE Online.
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Old 10-11-2012, 06:27 AM   #12
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If the stock is trading for less then the value of their capital and investments, minus debt, then it's the perfect time to buy.
If EA wins the IP theft lawsuit they could potentially owe more than their assets are worth.
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Old 10-11-2012, 06:34 AM   #13
Roc Ingersol
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The old zynga would have just copied draw something and called it drawville.
The other problem is that the old Zynga used to be the only kid on the block dealing shady in-app-purchases, spamming friends, cross-promoting games with in-game rewards, bribing for ratings, encouraging multi-level-marketing-style recruitment, etc.

These days, everyone's doing that shit.
The advantage they held due their unique scumminess is gone.
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Old 10-11-2012, 07:26 AM   #14
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If they divest the company for cash, stock holders can make some money at this point.

Oh "going public" you are a wicked vixen arent you?
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Old 10-11-2012, 08:07 AM   #15
Karai Pantsu
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If EA wins the IP theft lawsuit they could potentially owe more than their assets are worth.
And EA likely will win. They've got a pretty solid case against Zynga.
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Old 10-11-2012, 08:11 AM   #16
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I seriously doubt EA will win. Its a nuisance case to siphon cash from Zynga while EA's legal division has spare cycles.
If it slightly looks like EA will win somewhere down the line, it is still in EAs best interest to settle out of court with Zynga so EA does not set precedent in the industry and get banged for their own clones.
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Old 10-11-2012, 08:19 AM   #17
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I'm surprised that nobody mentioned that they have over a billion dollars in cash for this rainy day. Yes, there stock is shit...but they are far from done as they could just buy 10 more companies.
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Old 10-11-2012, 09:40 AM   #18
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I lost thousands of dollars investing in Zynga and Facebook. But I made it all back and then some investing in Gamestop. Zynga and Facebook need to burn.
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Old 10-11-2012, 10:07 AM   #19
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A little off tangent, but Draw Something was quite a fad there a while back. I even got into it, but as soon as Zynga started taking over control it went right out the window.
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Old 10-11-2012, 10:14 AM   #20
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It was a cash cow and not it is just another product...
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