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Zynga Slashes Outlook, Shares Tumble (The Wall Street Journal) Zynga rattled Wall Street Thursday by cutting its financial outlook thanks to difficulty winning audiences for the social games company’s new titles, helping send its shares plummeting after hours. Shares of Zynga fell 19 percent to $2.28 in after-hours trading, which would represent a new low. VentureBeat Mark Pincus, the chief executive of the San Francisco social gaming giant, said in a press statement and memo to employees that the company was weak in the “invest and express” category of games, or the Ville genre of games. He said the company expects to report revenue of $300 million to $305 million in the quarter and a net loss of $90 million to $105 million. AllThingsD Pincus, however, doesn’t want his employees freaking out (at least, not more than they already are). The CEO sent out a conciliatory yet upbeat letter to his troops, rallying them not to lose hope. ars technica Most notably, the company took a write-down of $85 million to $95 million on the value of OMGPOP, makers of Draw Something — more than half of what the company paid for it earlier this year. That means Zynga drastically overpaid for the smaller gaming company. TechCrunch If you look at the cash, short-term and long-term investments Zynga has on its balance sheet (which add up to just over $1.6 billion), the market is giving the company an enterprise value of between $100 million to $200 million beyond. Scary times indeed! continued…
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