When a company so new and so fresh off of a cash infusion from going public starts to make cost-cutting decisions surrounding their primary product, it doesn’t bode well for the future of the company. That seems to be the direction that Zynga may be heading after shutting down 11 of their titles.
According to Techcrunch:
The San Francisco-based company had overextended itself. During its heyday on Facebook it built dozens of games, then aggressively launched mobile games as smartphones gained popularity. It didn’t seem like a problem when the company was preparing for a big IPO.
The “big IPO” of which they speak has not performed nearly as well as anyone had hoped. It has lost over 70% of its value in a year and shows no signs of rebounding. The only thing it has going for it is the price tag – a bargain basement $2.33 per share at the time of this article. If they have any hope in survival, they will have to tighten up more than a handful of games. They will need to develop something that really resonates on mobile to continue their pull away from Facebook.
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