Entry on the stock exchange, Zynga shares traded at $ 10 the action. Several months later, action has fallen in half after playing yoyo in the first months to negotiate between $ 8 and $ 14.
Last Monday, the action won 10%. The reason? Speculation by some analysts reporting that Zynga could be purchased by Yahoo. This is at least a section of the Wall Street Journal refers.
But obviously, it's a rumor and no official statement was made on this subject. After having climbed 10%, several analysts have developed a flat this announcement and it is probably for this reason that the shares then lost 4% to be around $ 3.77 the action.
For Zynga, it would perhaps be a way for them to get out of their financial difficulties. It is now known to all that the company is in trouble and that it has dismissed several employees and various studios around the world.
As for Yahoo, buy Zynga could help the company on its way to refocus its efforts on mobile.
Some analysts are skeptical about the purchase. Ben Schachter, analyst at Macquarie Securities said that buyback Zynga will probably not happen because nothing does not "believe that Mark Pincus [CEO] wants to sell at the moment". He also said that Yahoo would not be interested in buying from Zynga since its strategy is to work in partnership with various content providers.
Even if Yahoo does not buy Zynga, logically, it is not impossible to see them work together in the near future. Yahoo has the audience for games from Zynga and Zynga could use another lever to get more players, and this outside of Facebook and its own gaming portal.
In a note sent to its clients, Macquarie Capital says that the idea that Yahoo can redeem Zynga is "unfounded"... "We believe it is unlikely that Zynga is bought back shortly, because we do not believe that Mark Pincus currently wants to sell the group."
According to the broker, the purchase of Zynga by Yahoo would not desirable for Yahoo which should rather focus on partnerships with various content providers.
To read the news this morning, very few experts/specialists recommend Yahoo to buy Zynga. According to the majority of between them, this purchase would be a bad for several reasons, including:
-Zynga could become a leader of the gambling online, but nothing is yet certain. In addition, having to manage the gambling online could give more problems at Yahoo than profits in the near future.
-Zynga loses millions of players every month.
-Mark Pincus, CEO of Zynga has admitted doing horrible things simply for the benefit of his company. In his words, it is a way to make his more aggressive approach. Who would want to one such company?
-Zynga closes studios currently and met staff at the door. This is not really an indicator of success.
A little more positive observers are that it could be an excellent way for Zynga to increase its traffic in a significant way (and put an end to their downswing, if one can say so).
Whatever it is, as soon as more information will be made public in this case, PokerCollectif know you.
In the meantime, discuss this news on PokerCollectif forums: Rumor: Yahoo in talks to buy Zynga
