Zynga Inc. (ZNGA) trading at $3.43, -0.04 in today's trade, owes its initial success to the social networking giant Facebook Inc. (FB) Founded in 2007, Zynga relied majorly on FB for its revenues and at one point, its success or failure lied in the success or failure of Facebook.
On a Market-cap of $2.6Bn and about half of it in cash, Zynga saw the need for diversification. They have now launched their modified website which allows gamers to directly play at Zynga.com, without a mandatory Facebook login requirement.
Mark Pincus who has had a tough time dealing with departing executives, the chief executive officer and chief product officer, recently requested that his annual salary would be cut to just $1.00 and he won't garner any bonuses or equity awards in 2013.
Hedge Funds like Zynga too -
16 hedge funds held long positions in Zynga, which is an increase of 14% over the third quarter. There are a few noteworthy hedge fund managers who were substantially increasing their holdings namely: Tudor Investment Corp, D.E.Shaw and Citadel Investment Group.
Why should you Buy..
The social media game developer will now begin real-money gambling through poker and casino games, months after announcing its partnership with U.K based Bwin Party Digital Entertainment (BPTY.L)
The ZyngaPlusPoker and ZyngaPlusCasino applications, launched recently, offer popular games such as Blackjack, Slots and Roulette, which will be made available in the form of Web and Desktop applications. With game stakes as low as £0.01 which will attract volume and substantially increase their market share in the £100 mn+ UK gambling industry. It gives the users freedom to deposit five different currencies- pound, dollar,