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May 18, 2012 / 12:31am

Zynga’s Going Down

Zynga’s stock has dropped 38% since the OMGPOP acquisition. Coincidence? I hope not!

Here’s the problem with Zynga. It would be a great business for a group of about 5-10 people. The business model that Zynga has pursued does not lend itself to a publicly-traded, multibillion dollar company. They produce social games. That is not a defensible product. Buying up games as they become hot is not a sustainable strategy. It takes nothing to produce a hot game. You merely need somebody with a computer, a good idea, and the ability to make a game. Making a game is not rocket science. Making matters worse for Zynga is that it does not and never will control the distribution channels.

Danny’s Typical Day At Zynga

While waiting for my coffee, I ran into Liz and Niblyn! I used to work with Liz on a different Zynga game team about two years ago. She works in Community and was/is often "The Voice of the Player" in meetings and in group emails. She’s wonderful to work with and her dog, Niblyn, is too cute not to pet. I end up crouched down, petting Niblyn, the whole time I’m having a conversation with Liz.

The Zynga Abyss

Skinner and Pavlov proved that primary reinforcers are extremely powerful motivators. After sex and sleep, bacon is one of nature's most powerful primary reinforcers, partly due to its high fat and protein content in comparison to other meats. Bacon has become known as the "gateway meat": the smell triggers intense cravings, even in vegetarians. But in our modern world, our instinctual craving for bacon and other fatty foods can cause significant health problems.

Leaked Zynga Memo Justifies Copycat Strategy

Zynga falters in debut, sheds doubt on IPO market

Zynga's near $9 billion valuation is less than videogame maker Activision Blizzard Inc's $13.6 billion and higher than Electronic Arts Inc's $6.7 billion. In the last four quarters, Activision and Electronic Arts generated more revenue than Zynga.

How Zynga’s IPO went from a $20B valuation to $8.9B in five months

With options included, Zynga’s value will be $7.6 billion to $8.9 billion. That’s bigger than Electronic Arts’ $7.7 billion, but far short of just five months ago. One of the consequences is that some of the investors who invested in February are underwater.

More on why it sucks to work at Zynga

Being told by my manager that if i am not at home sleeping, then i am here working. That is how i was welcomed to the team.

Krzysztof Szafranek's link blog

zynga

Zynga’s Going Down

Danny’s Typical Day At Zynga

The Zynga Abyss

Leaked Zynga Memo Justifies Copycat Strategy

Zynga falters in debut, sheds doubt on IPO market

How Zynga’s IPO went from a $20B valuation to $8.9B in five months

More on why it sucks to work at Zynga

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