Tomahawk, WI 02/06/2014 (BasicsMedia) – It is not secret that Zynga Inc (NASDAQ:ZNGA) has struggled a lot in the last few years. The maker of some of the most popular video games as well as social media games appears to be on the right footing, if the latest financial results are anything to go by. The company is purchasing the maker of Clumsy Ninja, a popular game developed by NaturalMotion, a British gaming company. This by far remains the biggest acquisition in the history of Zynga, having cost the company around $529 million. Coupled with other factors, it seems Zynga is doing well on this.

Clumsy Ninja is developed for iPhones. Now that iPhones are the most popular and iconic smartphones worldwide, this latest development involving both Zynga and NaturalMotion will have great impact on the company’s financials going forward. Under this deal, Zynga will pay through both stock and cash. The fact that NaturalMotion has been developing products that are geared for mobile environments was not lost on Zynga Inc (NASDAQ:ZNGA) when it made this latest acquisition, since it believes that this is the future of the gaming industry, and is getting ready in advance.

Zynga Inc (NASDAQ:ZNGA) does not expect great first quarter results. It expects things to remain in the same state they have always been in the recent past. However, the company believes that after the first quarter of 2014, it will display sequential growth in its financials going forward. To give itself a much better chance of success, the company expects to cut down the size of its personnel by around 15 percent in 2014. This is a step in the right direction after the company announced a loss in its latest financial report, which is much lower than what the industry expected.

If Zynga Inc (NASDAQ:ZNGA) is to enjoy the level of sequential growth it hopes for in 2014, it has to invest in making its games better than what is in the market. Once the games are doing well in terms of performance, the company will have to carry out more cuts in its workforce. Just last week, the company announced that it will sack close to 314 of its current workforce. This is in addition to the more than 520 job cuts that it carried out in 2013. Now that things are starting to look up for Zynga, it cannot afford to loosen its grip on the good and right things it has done thus far.

Zynga Inc (NASDAQ:ZNGA) announced that it expects first quarter revenue of between $155 million and $165 million, which would be in keeping with the trend noticed in the previous period, where it gathered $176.4 million in revenues. The company announced that it will spend close to $15 million in restructuring charges. The company has been on a learning curve, having started very well by developing one of its most popular social media games ever, Farmville. As part of the learning process, Zynga now believes that its future is in developing games meant for mobile platforms.

If Zynga Inc (NASDAQ:ZNGA) continues with the current performances, and finds a way of reducing its expenses while creating games that clients love, it will complete the amazing turnaround, and win back investor confidence.

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