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I told you were wrong...... Next week is going to be huge....New Jersey and Morgan Stanley on Monday...
Why you should buy Zynga now:
ZNGA; The Prodigal Son Returns 0 comments
Feb 22, 2013 11:36 AM | about stocks: ZNGA
ZNGA; The Prodigal Son Returns
Written by Kyle_C
Well, we all knew this day was coming, but when had been in question. Yesterday on February 21, 2013 Nevada's Governor signed into Nevada law the first piece of legislation legalizing online gambling. Seen here,http://leg.state.nv.us/Session/77th2013/Reports/history.cfm?ID=315 , Nevada force fed the legislation through on Thursday in order to beat New Jersey to the punch. The fight between Atlantic city and Las Vegas is not over here however. After New Jersey Governor was quoted as saying that he will quickly sign a bill legalizing online gambling in his state here http://www.lvrj.com/business/quid-catil-ubliu-191924471.html two days ago. Apparently, he is a man of his word as according to their website here http://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=A2578, New Jersey has passed legislation of their own and expecting it to be signed in the near future.
The question is, what does this mean for ZNGA? ZNGA has taken a heavy fall since their December 2011 IPO and $16 high shortly after. The lack of monetization of ZNGA's online users and failure to adapt with the market to mobile usage has led to ZNGA's fall to currently trading at $2.96. With ZNGA focusing all efforts to International Online Gambling however, this may soon change. In Q4 2012, ZNGA had 56 million online users however, monetization per user adds up to less than $10 a piece. However, online poker revenue, which ZNGA already had a firm foundation in with Zynga Poker, tends to generate 100x times free poker revenue per player. If this is not enough, ZNGA also has nearly half the cash as their market cap at these current prices. They are using these tools to change from a broken business model to one of profit while providing their users with the much desired real-money gambling platform.
If this is not enough, in ZNGA's most recent conference call, they explained how they would have overseas internet gambling up and running by early 2013. Online Gambling is expected to generate nearly $200 billion dollars worth of revenue in 2015 according to most estimates, and previously declared illegal US Poker Sites such as PokerStars have generated more than $5 billion a year in the past. In Congress, Harry Reid is pushing forward a bill that he failed to pass in December 2012 because of a lack of time. Currently with bi-partisan support and asking for 25% revenue taxes, this bill is seen as a partial quick fix for the US's debt crisis. Harry Reid has said that this bill is getting immediate attention, and it is only a matter of time that Congress sees the benefits to legalizing both US and international online gambling.
What about competition with ZNGA? The bill previously started on by Harry Reid had a provision stating that Poker sites that previously operated(illegally) would have to wait five years for reinstatement. Some sites will even be giving the "death penalty" and never be allowed to gain approval. ZNGA however is a family friendly and wholesome appearing name that would be perfect for Congress to test the water with.
Conclusion
ZNGA technically speaking, is sitting on an RSI around 50 and has previously bounced high off these levels. It is sitting on strong support at its 200MA and has the catalyst needed to confirm its chart. Its 1st level Fibonacci retracement line from its original high has still not been reached at $7.00 and I believe it will reach this in the near future. Previously in February, it exploded past $3.77 on news of legislation in New Jersey. It failed and the stock fell greatly to where it lies today, but an amended portion of this legislation is set to pass as seen in the link above. With international gambling inevitable for 2013 and Nevada's passage of its own online gambling bill, as well as countless other states such as Pennsylvania and California revisiting online gambling legalization, ZNGA's current Market Cap is laughable. One thing is for certain: People like to gamble and will continue to. Until human nature changes, ZNGA will have the best business model which is ironic considering how scrutinized their original model was.
Disclosure: I am long ZNGA.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
From Bret Jensen
Zynga (ZNGA) operates online social games as live services on the Internet, social networking sites, and mobile platforms.
Here are seven reasons why ZNGA makes a good speculative play at just over $3 a share:
After being a poster child for social media excess, management departures, and overvalued IPOs, ZNGA has found momentum recently. After bottoming at just over $2 a share in November, the stock is up some 50% in the last three months. Given its 52-week high is north of $15 a share, the rally could be in the early stages.
The stock is being buoyed as it appears well-positioned if online gambling is allowed. New Jersey Governor Chris Christie is currently pursuing this revenue stream. Given stressed budgets at the state level, I would look for other states to follow suit.
In addition, the stock recently reported an unexpected profit and had more bookings than analysts had estimated.
"Farmville," the company's most popular game, is being made into a half-hour television show.
Over half of the company's market capitalization is in net cash.
The company has almost $200 million remaining on a stock purchase plan, which would lower float by around 8% at current prices.
The company is very cash flow positive even as it posts small gains/losses.
The market makers job is to deceive the masses. If you remember the other day they traded it up to $3.32 in pre-market then destroyed it in regular trading. This is what they do.
It's up 25 cents off the low.... plus it's not even 8 am yet... 8 am is when the rest of the pre-market brokers open up
You had under $2.90 almost $2.80 yesterday. Now Nevada has signed their on-line gambling bill, New Jersey could be as soon as today, Pennsylvania is close and there are 30 states with bills. This is huge for Zynga. Plus the UK sites will go live within a month. The stock was brought down to cover the large short position. We will see what happens today....
Last trade of the day 248,200 share buy @ $2.96
Legal online gambling moves closer to reality
Zynga is preparing its first betting game, now just for the UK, but the US is sure to follow as this new tax source beckons.
By Aimee Picchi Mon 2:30 PM
Share26
Online video-game companies are prepping for the next gold rush: gambling over the Internet.
Zynga (ZNGA -3.54%), the creator of the FarmVille social-media game, is preparing its first betting game -- although the catch is that the product is for U.K. residents only. ("Connect with your friends and loads of new people who share your love for social online casino games," ZyngaPlusCasino says.)
But online gambling could come soon to the U.S., boosting the fortunes of Silicon Valley game developers, according to The New York Times.
Delaware is set to become the first state with online gambling, with the governor's office estimating that online gambling will start this year, USA Today reports. However, federal law will require gamblers to be within Delaware's borders -- with GPS software aiding in verification.
Not to be outdone, Nevada has introduced a bill that would legalize interactive gaming, while other states, including California and New Jersey, are also moving toward legalization. The reason? Online gambling could rake in tax revenue, something that states are loath to turn down, especially in economically tough times.
"[A]ll of a sudden thousands of developers in Silicon Valley [are] making money overseas and wanting to turn their efforts inward and make money in the U.S.," Chris Griffin, the chief executive of London gambling start-up Betable, told the Times. His company has opened an office in San Francisco.
Until the U.S. market opens up to online gaming, Silicon Valley companies are first testing the waters abroad, such as Zynga's new U.K. gaming product, which is slated to debut early this year. Facebook (FB -3.73%) allows online gambling for British users via Jackpotjoy, the Times notes.
“There is no question there is great interest from all kinds of people in games of chance, whether it is for real money or virtual rewards,” Zynga Chief Executive Mark Pincus told the Times.
Zynga, which is banking on gambling as a new strategy, last year applied to Nevada for a gambling license.
If that gets approved, perhaps it's just a matter of time before FarmVille fans will be able to place wagers on digital commodity prices.
Seriously? It was $2.82 and cratering within a few minutes it was $3.00 now at $3.0 again. Considering the sentiment this reversal is fantastic. Watch for upgrades and more news from Nevada this week. Remember they have not passed it yet but want to by tomorrow. New Jersey next week. If you can't see this reversal look harder. I look for a bullish close above $3.00
THis is why the stock is moving:
Online poker bill moves forward at Nevada Legislature
By Andrew Doughman (contact)
Published Thursday, Feb. 21, 2013 | 10:52 a.m.
Updated 25 minutes ago
CARSON CITY —
The Nevada Legislature today took its first step toward passing an online poker bill — a priority for both Gov. Brian Sandoval and the gaming industry.
The Legislature could fast-track the bill to the governor’s desk today, expediting what is usually a lengthy process.
“We’re going to do it now,” said Assembly Majority Leader William Horne, D-Las Vegas, who wants to beat New Jersey in being the first state to pass online gaming legislation. “We’re going to see if we can do it today. We’re going to beat New Jersey.”
The Assembly Judiciary Committee voted unanimously today to amend and pass the bill that would allow Nevada to move ahead with online gaming in the absence of federal action on the topic and to join in interstate compacts that would expand the customer base for Nevada casinos.
The bill now moves to a vote by the full Assembly, after which it will go to the Senate for a vote.
“This is good natured competition,” said Pete Ernaut, lobbyist for the Nevada Resort Association, in reference to New Jersey. “If we get there first, fantastic. If we get there within 24 to 48 hours, it’s not a big deal.”
The committee vote came after Sandoval and Horne reached a compromise on how much to charge for an online poker license. Horne had wanted to double the current license fee to $1 million.
He backed down from that, agreeing to a compromise that would allow the Nevada Gaming Commission to increase the $500,000 fee in certain circumstances.
The pair sat side by side to testify in support of the compromise legislation.
Republican and Democratic support for the bill should help it sail through the Assembly and Senate to the governor’s desk, where Sandoval could be one of the first governors in the country to sign an online poker bill.
“It is important that we move quickly,” Sandoval said, arguing that Nevada must maintain its edge in being responsive to changes in gaming technology and culture. “Other states are on the verge of approving similar measures. It is vital that we move quickly.”
An online poker law would legalize online gambling for the first time in Nevada, allow Nevadans to play online poker with players in other states, and potentially net Nevada millions of dollars in licensing and other fees.
The bill also repeals a Nevada law that says the state should wait for federal action authorizing online gaming. A federal proposal failed this past year, spurring states to push their own gaming proposals.
“We cannot wait any longer for Congress to act,” Sandoval said to a legislative committee Thursday.
Even without federal approval, Sandoval said the state should be in “good legal standing” to enter into interstate compacts exclusively for online poker, and his administration will communicate with the federal Department of Justice as Nevada crafts the compact language that would be authorized under this proposal.
Gaming regulators will address many of the specifics and mechanics of what online poker will look like for consumers.
“Those sort of things would have to be hammered out in interstate agreements,” said A.C. Burnett, chairman of the state’s Gaming Control Board. “Our staff have traveled the world during the past five years to understand how online poker is regulated overseas.”
Overseas gamblers have played online poker for years and Americans have played illegally.
“This essentially legitimizes and regulates what is already going on,” Burnett said.
No other state has legalized online gaming, but many are examining proposals similar to Nevada’s.
“This is a multibillion dollar industry that we haven’t been participating in,” Horne said.
The bill puts pressure on the state’s gaming regulators to use their expertise to craft the specific language of interstate compacts that appeal to other states that may not have as much history in regulating gambling.
They will have to address regulatory requirements including fraud and identity theft protection, age verification and geolocation technologies.
“In these agreements, we’re hoping that our regulatory framework that we have developed over the decades will be part of the selling point to jurisdictions that don’t have that,” Horne said.
Horne said the idea is to partner with states that have larger populations than Nevada, which would provide millions of customers for land-based casinos that also operate licensed online poker websites.
The price of entering into that market had been a sticking point for Horne and Sandoval.
Horne previously advocated a $1 million licensing fee and $500,000 renewal fee for online gaming licenses. The governor did not support Horne’s proposal, which had doubled the fees.
The bill passed with an amendment that knocked the fees back down to $500,000 for a license but allows the state’s Gaming Commission to increase the licensing fees to up to $1 million or lower them to $150,000.
Under the bill, operating licenses for Clark County gaming establishments would only be available to a “resort hotel that holds a nonrestricted license to operate games and gaming devices.”
Look at the volume and price movement from $2.82.....why...because they have loaded up and have covered most of their shorts... it will go up now
Here is my point. This is an article from Motley Fool just before BBRY took off look at their conclusion:
How the Blackberry Got Juiced
By Douglas Ehrman - September 5, 2012 | Tickers: AAPL, BBRY, GOOG, MSFT, NOK | 6 Comments
Douglas is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.
It almost seems unfair to put into circulation one more opinion calling for the end of Research In Motion Limited (NASDAQ: BBRY) and its once-revered Blackberry line of products. While the sentiment is shared, rather than extolling Apple Inc.’s (NASDAQ: AAPL) iPhone once more or meandering through how Google Inc.’s (NASDAQ: GOOG) Android took over the market, an examination of the critical flaw that brought RIMM to this point would be of greater interest and value. The aim of this investigation is to identify those mistakes that doomed the Blackberry to a life of obsolescence so that one knows what to look for in the products of those competitors that now dominate the market.
The First Mistake
As is so often the case with industry-leading companies, RIMM seemed to completely miss the disruptive force that ultimately led to its fall from the top spot. After attempts by Palm to make the Personal Digital Assistant (PDA) the next big thing in technology – and, remember Apple tried to play in this sandbox with the Newton – RIMM was the first company to successfully design and market the smartphone. The Blackberry was a true revolution in communications and business, making it a must-have device for most professionals. Early Blackberries integrated phone functionality, PDA capabilities and enterprise security such that many companies provided the devices for their employees. In fact, the Blackberry was such a “need” that it was affectionately nicknamed the “Crackberry.”
When Apple unveiled the iPhone, most business people thought of it as a cute toy, but not a serious threat to the electronic briefcase that the Blackberry represented. After all, the iPhone was not slick at navigating enterprise e-mail servers and security questions abounded. Individuals that wanted to carry an iPhone, often carried a Blackberry for work as well. Where things began to go wrong for Blackberry was when people began to notice that there were important things the iPhone could do that the Blackberry could not. Rather than finding a means to make iPhone functionality available in some form on a Blackberry, RIMM either chose to rest on its laurels or was unable to create the technology needed.
By the time models like the Blackberry Storm were introduced – this model was finally able to provide some web access, retrieve stock quotes in less than 20 seconds per ticker and a few other critical updates – the tide had passed its tipping point. RIMM chose to underestimate its competition and did not respond quickly enough. If a Blackberry option had remained even close in functionality to the iPhone, RIMM would have retained a huge contingent of its customers.
The Road Back
As RIMM struggles to release the new Blackberry 10, one cannot help but think that the company is still playing a game of catch-up that it has already lost. Never mind that the Blackberry 10 has already been subject to delays, there is no indication thus far that it will be anything more than a new version of the old that does what older versions should have been able to do when they were released. As we learned in the recent patent verdict, there is already an iPhone copy in the likes of Samsung. Making a mildly altered version of the iPhone is not going to bring RIMM back from the brink.
Along these lines, the upcoming release of Windows Phone 8, a collaboration between Microsoft Corp. (NASDAQ: MSFT) and Nokia Inc. (NYSE: NOK), should give investors a clear glimpse of how the market feels about different breeds of devices. The legal setback for Samsung and Android may provide an opening for the Windows Phone, but unless it contains some actual innovation, its future may be short-lived. If the phone is not sufficiently innovative and exciting, not matter how well it works, it may never be given a chance.
Were RIMM to have a way to get back in the game, and its seems nearly implausible that this is a serious option, it would be by introducing a smartphone that gives the consumer something he or she had not previously considered but wants to try. RIMM must play the game that Apple played when it unseated RIMM from the top spot several years ago. It must be the disruptor, the exciting upstart, the audible gasp creator. If the company cannot manage this, it will never be more than a fringe player that is preferred by the idiosyncratic few.
A RIMM Position?
Were the stock to trade below $5, it might make an interesting speculative play as a turnaround or buyout story. Trading around $7, the stock has too much downside to risk holding it as more than a scalping tool. If news of the Blackberry 10 improves, it may become interesting again, but for now, RIMM remains another tale of the company that once ruled the world. It is a cautionary tale of stagnation that applies to Apple and Google today; should either of these behemoths begin to ignore disruptive technologies in their respective wheelhouses, it may be time to get out.
And for Groupon this is a typical report at its low: Now they are upgrading?
Sure
http://beta.fool.com/mastodoncap/2013/02/21/mulitples-valuation-facebook/16551/?ticker=ZNGA&source=eogyholnk0000001
Mulitples Valuation for Facebook
By David Bernstein - February 21, 2013 | Tickers: FB, GOOG, ZNGA | 0 Comments
David is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.
I personally have been quite bullish on Facebook (NASDAQ: FB)? since it went below $20 earlier this year. The simple fact that the company has over 1 billion users was enough to get me excited. Given this kind of user base, all the company needs to do is figure how to best monetize these users.
While Facebook could always just go ahead and charge its users a minimal fee of $5 a year, it seems that for now, it has decided against this route. The company is now building strategic relationships with companies of all types and offering targeted marketing and advertising services. Since Facebook has all sorts of data on its users, this will likely be a very effective effort.
Considering how many pundits have come out with sell ratings on Facebook, I decided to conduct my own analysis, utilizing a multiples valuation approach to attempt to value the firm and its stock price. To do this, I used 3 measures that I felt would be the most accurate method to value the firm: Price to Sales, Price to Cash, and Price to Book. I used the multiples of the five most similar public companies I could think of, and then I weighted them according to which company is most similar to Facebook's business model. See diagram below:
FB Valuation
Comparables Google (.5) Amazon (.1) Zynga (.2) Groupon (.1) Pandora (.1) Weighted Aggregate
P/S 4.51 1.76 1.31 0.82 3.65 3.14
P/C 3.15 13.37 0.9 2.28 13.29 4.649
P/B 4.69 19.24 1.27 1.49 15 6.172
I feel that Google (NASDAQ: GOOG) has the most similar business model, utilizing targeted advertising, with Zynga (NASDAQ: ZNGA) coming in second place. Zynga offers online games and makes money from advertising as well. I consider Facebook to be a type of online social game. The others were just weighted at 10% each and include other online businesses, both retail and social.
Using the weighted aggregates, I then multipled these values by Facebook's actual Sales, book value per share, and cash per share to get the following implied stock prices:
FB VALUES Implied Stock Price
sales 4.64 $ 14.57
book/share 6.54 $ 30.40
cash/share 4.82 $ 29.75
$ 24.91
After averaging these values, I obtained an implied stock value of $24.91/share for Facebook. This is substantially higher then the $21.30 that Facebook is currently traded at.
Since the company's lock up has now expired, many insiders that have previously been unable to sell can now sell their shares. However, considering the stock is up today on large volume, it appears that either the insiders are not selling, or that institutional investors are buying up all shares that are being sold by insiders. Either way, I take this as a strong bullish signal that Facebook might have put its bottom in and has large room to run to the upside.
Current Price Target: $24.91
Interested in Additional Analysis?
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The point I was trying to make that misternoob can't understand is that Wall Street does not tell you to buy when you should but only when you shouldn't . I mean as a consensus, they were all pounding the table on Apple at $700 now in the $400's they say sell?. Today someone put a $1000 target on Google you can bet that the Wall Street money wants out. They were telling you that Groupon was garbage at $2.60 and Balckberry was going going out of business at $6. Groupon goes on to a 250%+ gain and BBRY over 400%. These are two examples there are many like them.
This is not an anomaly I have studied these calls at extreme levels. Wall Street as a group always behaves this way. This is why the extreme pessimism and ultra cheap valuations here on Zynga can't persist. Either the business has to crater and there is no evidence of this or they will upgrade when they (Wall Street as a group) have established a large trading position which they are doing now. Watch for this in the weeks to come.
That's not what my point is. I don't care about Groupon I was making another point but you don't see it.
There is a story on Facebook this morning about Facebook. They look at various metrics for several internet/social gaming companies:
Take a look at the comparables. Zynga is trading at 1.3 x price to sales...0.9 x price to cash and 1.27 x price to book.
The averages are 3.14 v 1.3 price to sales
4.65 v 0.9 price to cash
6.17 v 1.27 price to book value
You can see by the numbers that Zynga is trading at extreme level of valuations. Look for this to change.
You don't understand what I said, read it carefully....
You can take that the big money players have not bought enough shares so they don't want to talk about it. One more example is Groupon . It was left for dead in the $2's now they are tripping over themselves to upgrade it why.. because big money wants to sell the shares they bought in the the $2's this is how Wall Street works. Generally when there is extreme pessimism it is almost always a good thing. I remember a headline in a magazine "the death of OIl", things like that are always turning points.
If you have a three to six month time-frame yes. The analysts were completely wrong on the last quarter and they will be again. Just like BBRY when the fear was demise, BBRY was $6 but had lots of cash, analysts universally bearish just like here. BBRY tripled in the next 3 months. Extreme pessimism is a good time to buy extreme optimism , like today's call of $1000 for Google is always a good time to sell.
The news is good for the long run but this won't move Vringos stock price in the short-term. The court date is set 7 months from now.
You know it is pointless to comment on every tick on this stock. Only coming on too gloat when the stock is down and in your favour is cowardly. Not everyone chooses to day trade. There is an opportunity here to capitalize on Zynga's move to mobile and the release of their casino and poker sites in the UK. The last quarters report showed that the street is not giving them credit for what they are doing at least not yet. Once their mobile strategy becomes clear and they launch their gaming sites Zynga will go higher. Lets see if you have the courage to be on this board when that happens.
I blame him for not acting on the outstanding motions. JJ could deny the extensions because they really are not necessary, if he feels they are frivolous. If there were negotiations that's another matter, but Vringo says there are not, at least officially.
That's your opinion good luck with that....
The revenues are what they are $1.28 billion. You are confused. Like I said stick around here for a few months and I will post back your prediction.
Sorry but your comment about declining revenues is false.
Zynga Inc Research Report
Zynga released surprising results, with full year 2012 revenue of $1.28 billion, an increase of 12 percent compared to 2011. This was driven by the successful FarmVille 2 franchise. In the future, the company hopes to increase its presence in the mobile sphere as more users turn to phones and tablets for their gaming needs. The company earned 1 cent per share on a non-GAAP basis, while analysts expected an adjusted loss of 3 cents per share. In the future, Zynga also plans to enter real-money online gambling businesses outside the United States, where the activity is legal. The Full Research Report on Zynga Inc - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.NationalTradersAssociation.org/r/full_research_report/eb7f_ZNGA]
No kidding you shorted, you didn't have to tell me, it is pretty obvious but thanks anyway. I will hold you to this comment.
Every company issues shares , so what's your point? You sound like a person who bought this at IPO prices around $10- $11 and are now bitter. This will be much higher over the next year just watch.
Management owns over 110 million shares of Zynga look it up. If you want to talk about insider selling take a look at Google. Eric Schmidt is selling $3.2 billion dollars worth of stock this year. Combined with Sergey Brin and Larry page they will sell over 10 billion dollars worth of Google stock this year. Would you say that Google is a bad company because insiders are selling?
Show me where management dumps 600 million shares a year. This is total b/s there are not even 600 million shares in the float. I suggest you do better research. This comment alone shows me you don't know what you are talking about. Prove your point if you can. Also institutions plus management own almost 400 million shares.
Also I did not ask for your opinion.
http://finviz.com/quote.ashx?t=znga
Shares in float 572 million.
With respect to cash position:
Zynga teamed up with bwin.party, the leading international real money gaming operator, to offer real money online Poker and Casino games in the UK market. Zynga's UK-based RMG service and bwin.party will launch RMG products including Poker and a full suite of 180 Casino games in the first half of 2013, which include table games such as slots, roulette and blackjack. It will be interesting to see how popular and successful it can become. If things go well, then Zynga can tap into the huge market for real money games.
With over a billion dollars in cash, Zynga's cash per share stands around $1.69. Zynga's book value per share is even higher at $2.38. With Friday's closing price of $2.59, investors who get in now have to like their chances.
You are misguided. 1 billion dollars is not Gaap it is real money. Just because you are not a fan of social gaming doesn't mean it is not valid. There are hundreds of millions of users worldwide. Just stay away. We will see who is right here after they launch Zynga poker/casino in Britain and New Jersey signs the on-line gaming law, Zynga will be easily over $4. I don't care if you agree with me or not quite frankly.
Thank you Celtics. Without looking into the data do you know what their cash position is presently?
You are wrong about Zynga. I never said the patents justified the market cap alone. It is a consideration. They have over 1 billion dollars in cash little debt. They have almost 400 million in institutions and management. They are the leader in the world for social gaming
They are moving to the mobile space with an eye to monetize it. Further and most importantly they are moving to on-line gaming which many of their patents address. You will see this trading significantly higher over the next quarter and just like Groupon which was given up for dead in the $2's people will be kicking themselves for not buying Zynga here at $3.30 now....good luck
Any idea when/if Worlds wiil be graduating to a more senior board?
You made a mistake but that's your business. Here is some information on their patent portfolio.
Over the past year, Zynga has aggressively acquired dozens of game patents with an emphasis on gambling.
According to a report by Envision IP, an intellectual property research firm, Zynga has grown its holdings from a single patent and nine pending a year ago to roughly 89 U.S. patents and 36 pending today.
A Zynga representative declined to comment.
A quick search on the U.S. patent site reveals that Zynga owns at least 50 patents for everything from “finding friends for multi-user online games” to “changing virtual items based on location-based actions” and “harvest mechanics for interactive social games.”
Envision Managing Director Maulin Shah explains that another 38 or so patents have been reassigned to Zynga by a company named Walker Digital. Of those, he said, 33 patents relate to casino gaming and gambling technologies.
The patents reassigned to Zynga range from technology that allows users to place wagers, to team play within a casino slot club, to making payouts based on predefined rules. Another five had to do with audio streaming.
Shah said a significant ramp-up in patent holdings can be normal, especially if a company is trying to expand into a new business line. “They probably found it prudent to get some patents before they entered the online gambling space,” he said.
To be sure, Zynga is serious about moving into real-money gaming from its core business of selling virtual goods on Facebook.
Last month, it launched two landing pages in the U.K. that will eventually become the home to 180 casino games, including slots, roulette and blackjack. Additionally, Zynga’s FarmVille brand is expected to be used for one of the slot games. It also began the arduous process of seeking a license in Nevada to conduct real-money gaming online. The process could take close to two years — in just one state.
The acquisition of licenses from Walker Digital is the most interesting part of this story.
In August, The Wall Street Journal reported that Walker Digital had filed about 30 lawsuits targeting hundreds of companies, including Amazon.com, Google and Zynga. Walker Digital, which is owned by Jay Walker, the founder of Priceline.com, is known for enforcing patents opportunistically (a.k.a. patent trolling).
Shah said on March 26 that the case was dismissed, just four days after Walker Digital reassigned the 33 patents to Zynga. However, the patent at issue in the lawsuit was not one of the ones reassigned.
It is completely unclear if those events are connected, or how much Zynga paid for the patents (if anything). But Zynga’s not talking. We also sent an email to Walker Digital, but did not hear back immediately. If we do, we’ll be sure to provide an update.
Thanks Celtics for inviting me here. I am doing my dd now. It looks like a good situation. I have been aware of Worlds due to the speculation that Vringo might buy them. As you know patent litigation is a long process and full of twists and turns. Anyone who has been invested in VRNG will vouch for that. Having said that I do agree that there are several catalysts here. If Markman is a win there could be a nice pop and VRNG could take them out pre Markman when they get their money form Google. I expect a settlement over there.
Cheers
Have you guys seen this news. This is really good for Zynga
BY WAYNE PARRY
THE ASSOCIATED PRESS
Posted: Feb. 19, 2013 | 5:14 p.m.
LAVALLETTE, N.J. - Gov. Chris Christie said Tuesday that he will quickly sign an Internet gambling bill if lawmakers make the changes he wants to the legislation.
At an appearance in Lavallette, the governor said he could conceivably sign the bill the same day the Legislature approved those changes, or the next day, "depending on how my day is going."
Assuming the state Assembly and Senate approve an amended bill, "There's no reason not to sign it quickly," Christie said.
Both houses are set to consider the bill next week, and lawmakers say they are willing to make the changes Christie asked for when he vetoed it this month. They include a 10-year trial period on Internet gambling and higher taxes on the casinos' online winnings.
State Sen. Raymond Lesniak, one of the staunchest supporters of online gambling, said there is a commitment in both houses to getting a revised bill passed and on Christie's desk Feb. 26. Both houses will meet that day to hear the governor's budget address.
New Jersey is trying to become the third state to approve Internet gambling, after Nevada and Delaware. It wants to become a national hub of online betting, which many in the industry see as an inevitable, profitable expansion of legalized gambling.
Atlantic City's 12 casinos would run the online operations.
On Feb. 7, Christie for a second time vetoed an Internet gambling bill approved by the state Legislature. In his veto message, the governor said he is fundamentally supportive of Internet gambling, but he asked for changes including raising the tax on the casinos inline winnings from the proposed 10 percent to 15 percent.
Christie also wants a 10-year trial period for online gambling, after which the program can be evaluated by lawmakers. He also recommended a series of ethical and legal protections to make sure Internet gambling is done transparently, including having lawmakers disclose any past or present representation of companies seeking online gambling licenses.
If Christie signs a future bill, it would represent the largest expansion of legalized gambling in New Jersey since the first casino opened there in 1978.
Nevada's current law requires the state to wait for the federal government to legalize Web gambling.
However, Assemblyman William Horne, D-Las Vegas, recently introduced Assembly Bill 114 that would remove those restrictions preventing online gambling's full arrival.
That bill allowing Nevada to get into the business of interactive gaming will be heard Thursday in a joint meeting of the Assembly and Senate Judiciary Committees.
Gov. Brian Sandoval has asked the Legislature to pass an online gaming bill in the first 30 days of the session, but he opposes AB 114 because it includes higher fees than he wants imposed for such licenses.
Sandoval said it is "critical" Nevada pass its own online gaming bill, especially with New Jersey considering reworking its proposed online gaming bill.
The Review-Journal contributed to this report
It's a joint motion by Vringo and Google identifying for the court which motions to seal documents are now moot and which they still want the court to rule on. There are quite a few motions to seal , so I can see why the court forced them to draft this document. It is not meaningful for Vringo's stock price.
Nothing will happen here until we get some rulings. As I said earlier the single biggest event of this story was the Laches decision. It changed the perspective tremendously. First the stock traded down to $1.75 that day, but more importantly it made made people get on the sidelines. Before, expectations were being priced in, since and now they are not. It is all based on actual news and that has been few and far between. Until the good judge starts to make some decisions expect what we have had, that is, "paint dry" movement.
Millenneum Management increases stake in Vringo by 951,959 shares to 1.1 million
MILLENNIUM MANAGEMENT LLC 1,168,284 $ 3,352,975 0.02% 0.00% 874 951,959
I did say that Vringo's response was that what happened in this court was not normal. If he was going to rule on Laches outside of the norm DS was expecting a heads up, that obviously did not happen. You don't normally prepare for things that are outside of the norm as it appears to be here. Anyway it does not really matter, he ruled on it. This event was the single critical turning point in this story. Compare the expectations and stock price movement pre the Laches movement and post. An absolutely out-of-blue event that changed the perception of this story from buy now to let's wait and see... the post-trial delays don't help either as Red angus pointed out.