EA: Zynga Has "Dropped to Their Knees"
Zynga is struggling because it failed to diversify, according to EA's Peter Moore.
EA's stock price has been sinking steadily since December, 2011, dropping from $23 to $11.37 in less than a year. That hasn't stopped EA exec, Peter Moore, from offering his opinion on Zynga's plunging share value. [http://www.escapistmagazine.com/news/view/118723-Zynga-Share-Price-Crashes]
"To use, if you will, an Olympic analogy, we're competing in the decathlon and if we miss in one event, we've got nine others we can make up on," he told Bloomberg. " Zynga is running a marathon. They just hit the wall and dropped to their knees."
Zynga is struggling to keep its stock prices above the $2.50 mark as social gaming profits fall across the board. A number of Zynga insiders, including CEO Markus Pincus, sold portions of their holdings for millions of dollars shortly before the share prices plummeted, leading to accusations of insider trading. [http://www.escapistmagazine.com/forums/read/7.383747-Law-Firm-Accuses-Zynga-Execs-of-Insider-Trading] Zynga employees, on the other hand, can't sell their shares until August 16th, when they will, if the current trend continues, be worth marginally less than a bag of Skittles.
While EA has a lot of money invested in the ailing social gaming market, the company has lots of fingers in lots of different pies. Despite recently agreeing to give up its stranglehold on American football licenses, [http://www.escapistmagazine.com/news/view/118636-EA-Agrees-to-Settlement-in-Antitrust-Suit] EA's sports games are still almost guaranteed money spinners. The company also has a lot of money invested in mobile gaming, which according to Moore, "is where [EA] is seeing the real growth."
Source: Bloomberg [http://www.bloomberg.com/video/moore-says-ea-winning-market-share-in-social-gaming-F~d~xhbQS1q_CiN691GM5g.html]
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Zynga is struggling because it failed to diversify, according to EA's Peter Moore.
EA's stock price has been sinking steadily since December, 2011, dropping from $23 to $11.37 in less than a year. That hasn't stopped EA exec, Peter Moore, from offering his opinion on Zynga's plunging share value. [http://www.escapistmagazine.com/news/view/118723-Zynga-Share-Price-Crashes]
"To use, if you will, an Olympic analogy, we're competing in the decathlon and if we miss in one event, we've got nine others we can make up on," he told Bloomberg. " Zynga is running a marathon. They just hit the wall and dropped to their knees."
Zynga is struggling to keep its stock prices above the $2.50 mark as social gaming profits fall across the board. A number of Zynga insiders, including CEO Markus Pincus, sold portions of their holdings for millions of dollars shortly before the share prices plummeted, leading to accusations of insider trading. [http://www.escapistmagazine.com/forums/read/7.383747-Law-Firm-Accuses-Zynga-Execs-of-Insider-Trading] Zynga employees, on the other hand, can't sell their shares until August 16th, when they will, if the current trend continues, be worth marginally less than a bag of Skittles.
While EA has a lot of money invested in the ailing social gaming market, the company has lots of fingers in lots of different pies. Despite recently agreeing to give up its stranglehold on American football licenses, [http://www.escapistmagazine.com/news/view/118636-EA-Agrees-to-Settlement-in-Antitrust-Suit] EA's sports games are still almost guaranteed money spinners. The company also has a lot of money invested in mobile gaming, which according to Moore, "is where [EA] is seeing the real growth."
Source: Bloomberg [http://www.bloomberg.com/video/moore-says-ea-winning-market-share-in-social-gaming-F~d~xhbQS1q_CiN691GM5g.html]
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