You're absolutely right. Buying more companies is just going to make the company they bought profitable.
And from my experience, when a company is bought, usually that company stops trying (they breathe their sigh of relief and look at this as a profitable exit). Generally there's tension between the CEO of both companies and the CEO that gets bought out usually gets fired. Then the loyal employees of that company usually stop caring as well.
In this case Frederic Descamps (CEO of A bit lucky) is one of the nicest guys on the planet. I have a huge amount of respect and admiration for the guy and his ethics. You compare him and Mark Pincus and you'll see two polar opposites.
I know how each of them feels about each other, so I'll reserve judgment for now, but yeah, Zynga needs to ship something or the stock could easily* fall below cash.
Why could it fall below cash?
1) The public might not be convinced Zynga is operating on an efficient budget. 3000 employees and not much to show for it.
2) The lawsuits - we still don't know what is happening with those, we only know Mark cashed out (a huge misstep by him in my opinion) and might pay for it if a fed investigation is done.
3) Does Zynga actually know how to make games? They haven't really made games in the past (farmville is not a game) and the market wants games now (where as previously they didn't know what they wanted).
4) They seem to be missing the boat on a lot of opportunities, spending money like they just don't care.
5) Pincus's track record for companies isn't very good. Look at SPRT, see where that hovers at. Once Pincus sold that, he didn't care.
