Zynga Lowers Yearly Projections
Just when you thought things couldn’t get any worse for Zynga, the once soaring social game maker is lowering it full-year projections, and writing down the acquisition costs of OMGPOP by as much as $95 million.
“It looks like the Cinderella story that was Zynga’s $183 million acquisition of the long-suffering (and then suddenly desirable) startup OMGPOP may not have a fairy tale ending,” writes BetaBeat.
“In other words, the company will be taking an impairment charge for nearly half of the $180 million it paid for the Draw Something creator just six months ago,” Mashable notes. “The problems at Zynga are growing deeper,” writes Forbes.
“Zynga Inc. has gone from hot to cold, and then from cold to frozen,” writes DailyFinance.com. “The … company should have maybe stayed private.”
“The company also now expects to report a net loss of between $90 million and $105 million for the third quarter that ended Sept. 30,” SFGate.com reports. “The reduced expectations are because of lower than expected results for The Ville and delays in launching several new games,” according to VentureBeat.
“It appears the games that helped Zynga cruise to one of the largest tech IPOs are helping lead to its downfall,” The Wall Street Journal’s Digits blog writes.
“Today’s results follow a shockingly poor second-quarter performance and numerous executive departures, both of which led critics to question the state of the company,” AllThingsD reminds us.