Dallas, Texas 06/30/2015 (Financialstrend) – For Zynga Inc (NASDAQ:ZNGA) the social games developer, the month of June has been of mixed performance thus far. There have been many developments from within the company, such as the launch of three new games and innovative quasi-hiring process. However, the bottom line with all things happening at Zynga in recent times has been because of the individual worthiness that CEO Mark Pincus is able to bring to the company.
The latest of these Pincus-involved moves has been an ‘acqui-hire’ deal. Two of Pincus companies will now sell all of their assets as well as liabilities to Zynga. This was disclosed via a Reg FD on June 15.
Pincus had begun two companies, SF Incubator, as well as super.io Inc with about $2.2 million. He is now selling these two assets to Zynga symbolically for $1. He will retain liabilities of $365k of these two companies.
The reason for the sale to Zynga Inc (NASDAQ:ZNGA) appears to be the availability of key employees and the intellectual property of the companies to Zynga Inc. The purchase was reviewed and subsequently approved by Zynga’s board, unanimously.
With Pincus return as CEO, analysts have revisited their ratings for the online gaming firm. They believe the strategies that Pincus will execute will achieve the goals, where previous efforts have failed, in leading Zynga to top-line growth.
One of the first changes has been to pare down on the gaming categories and moving away from the sports gaming domain. With other operational efficiency and cost-cutting Zynga Inc (NASDAQ:ZNGA) is all set to return to profitable ways, believe financial analysts.
However, on Monday, share prices of Zynga too have slipped, as did peers of the online gaming industry. The reason for the sector-wide effect was the Internet Poker Freedom Act introduction in the House of Representatives.