Zynga Inc (ZNGA) Loses Yet Another Exec, Despite Pincus' ReassurancesVW Staff
Having already been hit from almost every side, Zynga Inc (NASDAQ:ZNGA), the world’s leading provider of social games services, has now received another blow with Dave Wehner’s decision to part ways with the company. Dave Wehner’s, Zynga’s top finance executive, decision to walk out the door has yet again pushed Zynga more into a downward spiral, despite CEO Mark Pincus’ positive demeanor about the future of this company.
As reported by the Wall Street Journal, according to a September meeting between Mr. Campbell, a technology veteran, and Mr. Pincus, Zynga almost reached the brink of breaking down because of the latest crack in the wall. According to a several interviews with both the current as well as former Zynga Inc (NASDAQ:ZNGA) employees, Pincus is discouraged and disappointed with the current state of the company and only apparently appears to have been strongly wrestling the situation at hand. Also, some ex employees of the gaming company criticized the CEO for the lack of company’s strategic vision and the company’s meager attempts in boosting employee’s morale.
In a separate interview with Wall Street Journal, Pincus argues that, “social technologies have dictated fundamental changes at Zynga Inc (NASDAQ:ZNGA). And when businesses change, it’s inevitable that some people will choose to leave.”
During an offsite meeting, Jonathan Liu, a director of one of Zynga’s product, told the reporters that Pincus was almost yelled at by him over what seems like a lack of a well articulated company’s strategy to grapple the losses.
Per WSJ’s recent report, Zynga’s stock faced a rapid free fall swing back in April, soon after its acquisition of a new game for a sum of $183 million that left investors worried about the company’s financial strategy. As the September quarter approached, it appeared that those worries were not unrealistic at all, as the company was reported to face a loss of $52.7 million – declining the market worth of the company’s public shares to $1o per share.
Not just these declining stocks, but the falling interest of users in Zynga’s Inc (NASDAQ:ZNGA) games turned out to be some of the major concerns for the company to wrestle with. As a result of Pincus’ recent attempt to reorganize the company’s overall structure, a major shuffling has been made in his management team following a recent departure of former COO John Schappert, a giant lay off of 150 employees, and latest exit of Mr. Wehner.
Despite Pincus’ reassurance to investors on the company’s focus of being a game platform for third party developers other than Facebook Inc (NASDAQ:FB), drawing a look at the recent happenings, all of this put a real question mark over company’s ability to move forward without facing more losses and potential departures. With share prices continuing to slide, the question is, will Pincus really be able to save the company?