rumored to be interested
in a bid for Zynga (NASDAQ:
). At least one analyst, Wunderlich's Blake Harper, believes that
Zynga has officially become a
possible takeover target
for the firm, along with Yelp (NASDAQ:
) and OpenTable (NASDAQ:
As the owner of the FarmVille brand, Zynga might seem like an
attractive acquisition. If anyone could turn the company around,
it's Yahoo. That does not mean that Yahoo should be ready to open
its checkbook. There are many reasons why the company should
forget Zynga ever existed.
Never mind Yahoo. Most consumers are beginning to forget Zynga
While the Angry Birds fad continues to thrive for Rovio, Zynga
has been unable to keep its own fads -- namely FarmVille and
Words With Friends -- from losing their luster.
AppData's application chart
indicates that several dozen Zynga games are losing players. Far
fewer Zynga games are gaining players. This is yet another sign
of trouble for the struggling enterprise.
The Gambling Initiative Might be a Pipedream
Investors hope (and perhaps believe) that Zynga will one day
become the leader of online gambling. However, there is no
evidence to confirm this assumption.
Zynga's sketchy track record and lackluster game efforts
should be more than enough to scare away potential investors,
particularly Yahoo. Why should anyone believe that its gambling
initiative will be any more successful?
Zynga Loses Millions of Players Every Month
Without any compelling games to inspire users to stick around,
Zynga has been losing
millions of players
Despite the declines, Zynga is up more than 64 percent
year-to-date as investors buy into the hope that the company will
turn things around with a slate of gambling games. As of this
writing, however, Zynga's shares are down more than four
Horrible Things for Revenue
Zynga CEO Mark Pincus has admitted to doing "
every horrible thing in the book just to get
." Who would want to buy a company from a man like that?
No Success? No Problem
Zynga has been doing so poorly that it
laid off more than 100 employees
, closed multiple studios and shut down several games last
That didn't stop the company's CEO from spending on a
Note: The author of this article has no position on Zynga, has
never had a position on Zynga, and does not plan to take a
position within the next 72 hours.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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