[ x ] remove ads and scale site to 1080p+
[ x ] remove the ads & get mobile premium
pay whatever you want to upgrade
 
 

Zynga shares plummet, lawsuit coming, gravy train crashes

10:00 AM on 08.01.2012  ·  Jim Sterling@JimSterling
0

Farmville creator Zynga is ... buggered. After a few years of living large and sucking as much cash as it could from Facebook users, the proudly "evil" company's bottom is well and truly falling out. Share prices have been falling for the past few weeks, today plummeting to a new low of $2.95.

Taking the fall is former Xbox man and current COO John Schappert, who has been stripped of his authority over Zynga's game business, having to hand the reigns over to David Ko and Steve Chiang. 

Oh, but it doesn't end there. The company is also facing a class-action lawsuit, where it's alleged that higher-ups were insider trading. Zynga bigwigs, including CEO Marc Pinkus, are said to have sold over $500 million in stock three months before the crash. Five legal firms are investigating, and "hundreds" of investors may be included in the suit. 

This was pretty much bound to happen, really. Zynga poured all of its efforts into exploiting an audience that, at best, has the attention span of a magpies with ADD. While casual gamers are an important demographic, they're not reliable in the long term -- especially Facebook users, who by nature are bored of everything and require constant fresh stimulation.

When all your money is made from optional purchases by faddy consumers ... well, you're asking for trouble.

 
 

Enlighten an uninformed cougar: FacebookTwitterRedditEmail
 

#Facebook #FAIL #Industry Bull #lawsuit #Legal System #Money #Zynga
 
 
 
[x] advertisement
 
 


Jim SterlingFormer Reviews Editor // Profile & Disclosures
Fronts12537Blogs 194Following42Followers1559

Destructoid reviews editor, responsible for running and maintaining the cutting edge videogame critique that people ignore because all they want to see are the scores at the end. Also a regular f... more
Trending on Destructoid:

 
 


Dtoid is fighting adblockalypse without native ad article bullsh* thanks to Huge Members. Please give them sex or donuts:

SirDavies
SirDavies


Since 5:49 PM on 10.29.2011

Thomas Louzon
Thomas Louzon


Since 10:16 AM on 01.14.2014

NekoShogunXX
NekoShogunXX


Since 11:51 PM on 02.14.2013

VidarImmortal
VidarImmortal


Since 8:52 PM on 04.11.2016

 

Please login (or) make a quick account (free)
to view and post comments.





Three day old threads are only visible to verified humans - this helps our small community management team stay on top of spam

Sorry for the extra step!