Zynga Moves Away From Facebook, Toward Mobile

“The scale that served us so well in building and delivering the leading social gaming service on the web is now making it hard to successfully lead across mobile and multi-platform, which is where social games are going to be played,” then-CEO Pincus said in a June 2013 statement. At the time, the company reported losses in the range of $28.5 million to $39 million. Time to be more than stable Since those layoffs and losses, Zynga brought in Mattrick and largely stabilized its business. In the fourth quarter of 2013, the company reported $147 million in revenue and adjusted EBITDA of $3 million. Zynga also announced plans for a 15% global workforce reduction and an expanded cost savings plan expected to generate approximately $33 million to $35 million in pre-tax savings for 2014. Cost saving and small profits might be better than a large loss, but they highlight that stability is doing nothing to move the company away from its reliance on Facebook. The acquisition of NaturalMotion is a half-billion-dollar step toward declaring Zynga’s independence. http://www.fool.com/investing/general/2014/02/01/zynga-moves-away-from-facebook-toward-mobile.aspx

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