Stock Ticker

  • Loading stock data...

Zynga Inc (NASDAQ:ZNGA) Decided To Withdraw Its Application For A Gambling License In Nevada

Boston, MA 09/30/2013 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA), the social gaming giant has decided to take a step back when it comes to real world gaming. Zynga has decided to withdraw its application for a gambling license in Nevada, US. But this should not come as a surprise to company followers as it was pretty much on cards when Don Mattrick (who worked on Microsoft’s XBOX) took over the post of CEO from founder Mark Pincus.

What could be the reason behind this withdrawal of application for real money online poker? Speculations are rife that it might be because of small gambling population of Nevada. Two existing sites operating in that region have less than 500 users. So, maybe Zynga may not be interested in fighting a battle where there is not much to be won.

But there may be a more serious reason for this withdrawal. With company’s revenues falling more than 30% since last year and a net loss of $16 million, chances are that company may never be able to see its glory days when its stock price kissed $15 on a daily basis. It now hovers below $3.8.

So what went wrong with Zynga? The main culprit here is Zynga’s original strategy, because of which it became so dependent on social networks like Facebook, that when FB decided to rework its platform using ‘Timelines’, it had a serious impact on how users interacted and found Zynga’s game on FB. With more prominence being given to user’s life on timelines, it became outright difficult for Zynga to stay visible on user’s news feeds.

But all might not be lost. Zynga seems to have revisited its goals and is looking to become a major gaming player on mobile platform. But here once again, it will have to deal with the might of Facebook.

Published by Ruchi Gupta

Swati Goyal has over 6 years of experience in financial research & analysis domain. She has built financial models varying from consumer goods to banks. She has her articles published in leading dailies of the nation



Recent Stories

SignUp Now For Our Featured Newsletter