Zynga folds on U.S. gambling bet, shares plummet

Mousey

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By Gerry Shih

SAN FRANCISCO (Reuters) - Zynga Inc will largely abandon its long-running efforts to build a real-money gaming business in the United States, a prospect investors once believed to be the struggling company's sole lifeline.

The surprise announcement came as the company behind once-popular games such as "Farmville" and "Words with Friends" reported it lost 40 percent of its monthly active users in the second quarter, as it bleeds mobile gamers to aggressive rivals.

Don Mattrick, the former Microsoft Corp Xbox boss who replaced founder Mark Pincus as chief executive this month, said the company needed to go back to basics, anticipating two to four quarters of volatility as it "resets" its business plan.

The company's shares dived 14 percent to $3.02 in afterhours trading....
 

mikke47

Registered User
Joined
Jul 27, 2013
Location
US
I really doubt this will happen. Maybe they just need a break until the US gambling will become less strict
 
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