More High-Ranking Staff Flee Zynga, Inc. (NASDAQ:ZNGA)
Posted by Todor Pichurov, Dec 05, 2012 15:45
Arguably the most popular name in the world of trendy online casual games, Zynga, Inc. (NASDAQ:ZNGA) lost two more high-profile employees. The company's top management level is starting to get worryingly sparse as the two departures are added up to a string of officers and directors leaving various branches of Zynga.
Roy Sehgal, ZNGA's former vice president, left the leaking ship of the company, along with general manager Steve Schreck. Sehgal has been with Zynga since 2009 and he was the man behind the Cafe World franchise. Schreck left ZNGA to work with another former company employee – Mike Verdu. Verdu started his own game company geared towards mobile development, after leaving Zynga this summer.
Zynga recently changed its contractual agreement with Facebook, loosening the tight embrace the two companies were in. The changes were perceived by many as damaging to ZNGA, as the amendments stripped the company of some of the exclusivity it enjoyed and put it on more or less the same level other Facebook game developers operate on.
The stock lost over $0.25 in two consecutive sessions following the announcement, made in an official 8-K filing. However, analyst Michael Pachter, whose name is often linked to game industry stocks and predictions, said that he did not believe Facebook will be using this change to develop its own games and that it is a bit of a condescending nod to ZNGA, who used to be a hugely successful partner but are in a hole right now.
Zynga is failing to grow and develop products that can lend it some penetration in the mobile market. The stock is now a little less than 80% down from its initial public offering price of $10 per share. In yesterday's trading ZNGA closed 0.9% up at $2.25.
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