Tomahawk, WI 02/07/2014 (BasicsMedia) – Zynga Inc (NASDAQ:ZNGA) could finally be on the verge of something that it has not experienced in a very long time. The largest social media gaming maker has started 2014 on a very good note, by posting a net loss, which is much smaller than what the industry analysts had predicted. The company has announced that its shares are also doing quite well, rising higher and higher, probably due to the better than expected financial results that it posted for the fourth quarter of 2013. The question here is whether the latest developments are long-term or not.

Perhaps, the biggest development to have come out of Zynga Inc (NASDAQ:ZNGA) is that it intends to make NaturalMotion its latest acquisition. The significance of this acquisition is that Zynga will part with more than $527 million to make it happen, which is the highest amount the company has ever paid for any acquisition since it was established. By doing this, Zynga has proven that it is willing to put its money into investments it believes will add value to the company.  By doing this, Zynga has proven that it is willing to do what other big companies do to remain in business.

While a close look at Zynga Inc (NASDAQ:ZNGA)’s finances up to December 31, 2013 will prove that the company saw a drop of 43% in its revenue, this does not dampen the mood in any way. The company collected $176.4 million in revenue, which is much better than the $186.2 million that analysts had predicted for the same period. Zynga also reported that it saw a relatively modest growth in bookings for its gaming franchises. Although the company was left disappointed by the modest growth, the good news is that there was growth, something positive, after a period of negativity.

Two of Zynga Inc (NASDAQ:ZNGA)’s games that saw modest growth in bookings during this period include Words With Friends and Zynga Poker, which grew 33 percent and 8 percent sequentially, respectively. Don Mattrick, who is the company’s CEO, has announced that he expects 2014 to be the best year in terms of growth for Zynga in a long time. As analysts, we can only hope that growth in this sense does not refer only to acquisitions, where Zynga’s record is not good based on the past developments. Therefore, Zynga has to do more than just acquisitions to convince the market.

Finally, it is worth mentioning that Zynga Inc (NASDAQ:ZNGA) is also undertaking staff layoffs in 2014. It has been carrying this out for quite some time now, and hopes to continue with this exercise deep into the first quarter of 2014. By doing this, Zynga hopes to save between $33 million and $35 million this year alone, which it can then reinvest back into its business. The best way in which Zynga will create long-term productivity and leave its troubled past behind, is to find ways of coming up with new products, which include games that will become hits in 2014.

What Zynga Inc (NASDAQ:ZNGA) has proven this far, is that nobody should start writing its obituary, just yet.

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