Zynga COO Steps Down
Taking the blame for Zynga’s underperformance, John Schappert has relinquished his role as the company’s Chief Operating Officer.
The departure comes “after he was stripped of some responsibilities at the company,” Bloomberg reports, citing sources. Specifically, Schappert “had lost his role overseeing game development in a reorganization that was aimed at reviving growth and making more money from mobile services.”
“Beset by charges of copyright infringement and insider trading, the bad news keeps rolling in for Zynga,” VentureBeat writes.
The sharp decline in Zynga’s share price has called out for change in the company’s operations, “The Next Web notes. With Schappert’s departure, “and the firm’s new game, Zynga could be laying the groundwork for a turnaround.”
“His resignation is not a terrible surprise,” Mashable points out.
“It is nevertheless a painful loss that Pincus couldn't find a way to keep Schappert, who only joined the company 16 months ago,” Business Insider remarks.
“Schappert had joined the social gaming company in May 2011, after having served as COO of Electronic Arts,” Fortune notes, adding: “It is not believed that a recent EA lawsuit against Zynga played any role in Schappert's resignation.”
“The company may have made the moves to shore up investor confidence in the company as it scrambles to recover from a disastrous second quarter and 2012 outlook,” writes AllThingsD. “But still, the changes are sudden given that Schappert was one of Zynga’s priciest -- and most prized -- recruits from Electronic Arts.”