Tomahawk, WI 8/06/2013 (Basicsmedia) – Though the shares of the social media stocks had recently been sizzling with marginal gains and huge investor attention, it had not all been bright for the social games developer, Zynga Inc. (NASDAQ:ZNGA). Lower revenues, drop of top executives, net loss to the company, declining active users of the games and change at the top management had been staggering this stock to lower level of prices in the recent days.

Drop of three executives

It had recently been reported that three executives were dropping from this social games development, which appears to be a part of the restructuring plan announced by the new Chief Executive Officer, Don Mattrick. While the company had stayed quiet over this matter, it had first been reported from Bloomberg that Nathan Etter, John Osvald and Jesse Janosov were exiting from the company, the reasons for which are unknown.

This major social game developing company had recently been facing struggles on all fronts especially owing to the wrong decisions taken at the senior level management of Zynga Inc. While the former CEO and Chairman had accepted this fact that the company is struggling and had thereby resigned from his position, Zynga Inc was quick at replacing him with Don Mattrick, the head of entertainment division at Microsoft’s Xbox. While the new head is well known for his proven ability and management style in the social games arena, there had been marginal gains in the stock prices once he took over as CEO of Zynga Inc., which proved to ascertain the investor confidence over this new leadership.

No more online gambling

One major encouraging factor for the investors towards this company was the fact that Zynga Inc. was looking forward to pursue online gambling which was expected to become legal in the US in short time period. However with the recent announcement from the company that online gambling was no longer in its product portfolio, this last sign of hope for the social game company had also been destroyed. The new CEO of Zynga commented that his proposed restructuring plan would focus more on video games than on casinos.

Further, the company had also posted poor performance for the recent quarter of the fiscal year with lower than expected revenue generation and earnings per share. It had further been expected by analysts at Zacks that Zynga would post net loss of 13 cents per share for the full fiscal year of 2014.

Poor management, not bad business model

With all such struggles right at the face of this social game developer, the stock had been presenting steady decline in prices for the past one month of trading. However, this had not been the case of Zynga all the while as the company had been second largest to raise a record $1 billion from its initial public offer, which was offered at the time when the social games of the company had been the top most attraction for the users of Facebook.

However, it is not all over for this once leader in social games – with new restructuring plan announced by the present CEO of the company, Zynga Inc still holds lots of potential to recover sooner. If the widely hailed great executive Don Mattrick could prove successful at resolving the wrong decisions made by the earlier management, the social games developer is sure to be back on the track with huge market share in the ever expanding platform of mobile games.

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