Zynga in state of crisis as stock becomes "worthless"
Zynga’s stocks have reached an all time low, raising questions about the future of the social and mobile gaming company.
According to reports, Wall Street values Zynga’s stock at just $2.46 per share, a 16 per cent fall in what was already a poor financial positional. Zynga had already warned traders of a fall, though the reality is far worse than might have been expected.
One analyst says there’s no quick fix for Zynga either, with another predicting “significant” layoffs.
"The outlook for [the fourth quarter] is significantly lower than our expectations, which assumed some growth from newer titles launched this summer," claims Doug Anmuth, a JP Morgan analyst. "We expect fundamentals to remain weak over the next few quarters as the company faces several headwinds."
Zynga, which acquired game developer OMGPOP in March for $180 million, has admitted it is to write off between $85 million and $95 million from that investment alone.
OMGPOP was the team behind Draw Something, a mobile game that initially soared in popularity, but has increasingly been deleted from people’s smartphones and tablet devices. Do you still play it?