Could Yahoo Be Considering Purchasing Zynga?

As we have been reporting extensively, Zynga seems to be making a major comeback and are looking to return to their December 2011 $10 share price of their IPO launch. Since then there have been no shortage of headaches for CEO Mark Zynga which included top management walkouts, disappointing results and investors losing confidence. It got so bad for the embattled CEO that there were even reports in November last year that Pincus was “near tears” due to the company struggling.

Zynga’s difficult 2012 seems to be behind them with a positive start to 2013. In the last few months their share price has risen over 50% with the news that they plan on entering the real money gambling market. On Monday the share price rose a further 8% on news that Yahoo was possibly looking to purchase the world’s largest social gaming giant.

With online gambling in the U.S. expanding by the day it is no wonder that many see the potential in such an important global brand like Zynga. What lead to the share price rising were reports from an analyst at Wunderlich Securities who speculation that Zynga was one of two major acquisitions planned by Yahoo.Whether the reports are accurate or not, it has to come as a welcome relief for Zynga and CEO Mark Pincus personally to be the subject of positive publicity.

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