Tomahawk, WI 02/03/2014 (BasicsMedia) – Zynga Inc (NASDAQ:ZNGA)’s stock surged highest ever since their initial public offering after yesterday the company announced its two new plans, first to decrease workforce by as much as 15% and second, to overtake Natural Motion Ltd.

Zynga Inc (NASDAQ:ZNGA), which had made its first public offering in Dec 2011 at $10 per share, had surged up the highest yesterday since. It reported $4.40, a high of 24% at the close in New York. This was after the maker of “FarmVille” announced that it will cut down as many as 314 jobs. The employees at the company’s San Francisco headquarters will face the maximum impact of the job cut. It also shared plans of buying the U.K. based video games developer. The company seeks to invest $391 million in cash and another $136 million through 39.8 million of its shares, according to value of the shares on the closing on Jan 29.

CEO focus on smartphones

Zynga Inc (NASDAQ:ZNGA)’s Chief Executive Officer, Don Mattrick is restructuring the company to concentrate on developing games for tablets and smartphones. Mattrick, who had resigned from Microsoft Corporation (NASDAQ:MSFT) to join Zynga, has targeted three key segments for growth, namely, the company’s popular “Ville” games, puzzle games and virtual gambling. With this new acquisition, he will be adding mobile games such as “Clumsy Ninja” and “CSR Racing” to the company’s credit. He further plans to launch the company’s probably most popular game, “FarmVille”, on mobile phones too. Projected time of the year for this action is June when another three fourths of the new games will also be made available on cell phones. Zynga had been missing this consumer shift from user preferred games on the Facebook website to applications more popular on phones in the reign of the former CEO and founder Mark Pincus.

NaturalMotion among top 50

On an average, the number of mobile users of Zynga was 1.3 million at the end of last year, which makes a fall of 0.3 million as seen three months back. In contrast, NaturalMotion’s games “Clumsy Ninja” and “CSR Racing” have appeared in the top 50 highest grossing games on Apple Inc. (NASDAQ:AAPL)’S iOS platform, according to AppData. MaturalMotion has total bookings of around $62 million in 2013 and according to this data, Zynga’s buying the company will bring 1 cent per share to the company’s total earnings in 2014. That would mean NaturalMotion will contribute between $15 million to $25 million in adjusted earnings before taxes, interests, amortization and depreciation.

Zynga Inc (NASDAQ:ZNGA)’s CEO looks forward the year 2014 as a year of growth. Compared with analysts’ forecast of Zynga’s current quarter sales of about $164.2 million, the company estimates sales between $155 million and $165 million. Last year, they cut down the workforce by 520 jobs and shuttered offices in order to seek new areas to focus on.

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