It looks like Zynga's future is taking a nosedive. Even after taking on Microsoft's Don Mattrick as a new CEO, the company reported a painful earnings report for the second quarter yesterday, according to SFGate .
Mattrick, who is two weeks on the job, stated he will be taking the company ‘back to basics.’ It looks like ‘basics’ doesn’t include real-money gambling though. The company has been researching ways to being RMG to the United States, where it is presently illegal in several states. The hope that the company could pull this off is what attracted several investors to the company. Though Zynga will still pursue RMG in the U.K., those investors have now dropped out, and it shows. After hours yesterday the company's stock plummeted 18 percent.
According to Reuters , Mattrick’s game plan includes putting the emphasis back on “free-to-play games on Apple Inc's iOS and Google Inc's Android platform, as well as tried-and-true franchises like ‘FarmVille’."
Despite the grim quarter, analysts actually predicted things would be worse for the company. But Mattrick knows the worst is not yet behind him. As the company begins to shift focus, Mattrick expects at least the next year will result in ‘volatile’ quarter results.
Were you looking forward to a company outside of Las Vegas trying to break into gambling or did the company truly have no business messing with a system they know nothing about?
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/zynga-backs-out-of-real-money-gambling-stock-plummets?cid=roadrunner