Zynga has been showing disappointing financial results in recent quarters. Many analysts doubt that it will return to profitability in the foreseeable future. In addition, its transition to the mobile segment turned out to be more difficult than expected.
Colin Sebastian of Baird Equity Research believes that the company’s “transition period” is far from over. Moreover, this period may drag on for the whole of 2013, requiring a significant regrouping of resources, as well as a revision of the entire product line already under development. Sebastian also estimated the planned value of one share of the company at $3 (he previously estimated it at $6), noting a large number of risks, including Zynga’s heavy dependence on Facebook.
The forecasts of Ben Schacter from Macquarie Securities are even more pessimistic. He believes that Zynga no longer has advantages over other developers. The company will have to fight on an equal footing with others for users of social games switching to mobile platforms.
Michael Pachter, a well-known analyst from Wedbush Securities, also lowered his estimate of the value of Zynga shares from $ 7 to $4 and annual income from $1.4 billion to $1.2 billion.
Meanwhile, the exodus of many key employees from the company does not stop. The last loss is brothers Paul and David Bettner, creators of the popular mobile game Words With Friends. They founded the Newtoy studio four years ago, and in 2010 it was bought by Zynga for $ 53.3 million, after which the team was renamed Zynga With Friends.