Shareholders are going to get to find out about what it feels like to move back toward book value in shares of Zynga Inc. (NASDAQ: ZNGA). The company is very dependent on Facebook Inc. (NASDAQ: FB) for revenues, but a new amended agreement is going to change that. The company showed in a filing that more distance and flexibility will be the new future as the companies lighten up on their interdependence and exclusivity in ads and credits. Facebook also will not have exclusivity on new game launches.
Today’s news should be of little surprise. The writing was on the wall. Zynga needs to show that it can live without such a Facebook step-brother relationship. And Facebook’s payments to Zynga already have fallen by about one-fifth. One concern is that Facebook may now develop its own social games, although this remains to be seen.
This is one of those bits of news that is long overdue, even if it does come with some pain. Zynga shares are down 9% at $2.38 this morning. Its most recent balance sheet showed that its cash plus short-term and long-term investments came to $1.67 billion before factoring in any extraordinary payments or buyouts, versus what is an adjusted market cap of $1.86 billion if you factor in the 9% drop. Zynga has traded in a 52-week range of $2.09 to $15.91.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
