Zynga Inc (ZNGA)

[august1991]

Will the new CEO have a positive Impact?

The arrival of Don Mattrick has instilled some confidence back into shareholders. Mattrick was quite successful in his previous tenures with Electronic Arts and Microsoft. At EA, he was best known for working on the development of blockbuster games like Need for Speed, FIFA and The Sims. During his reign at Microsoft, Xbox saw its user base increase from 10 million to more than 75 million. Mattrick was also responsible for adding Netflix and YouTube to the gaming console.

The company has struggled to develop chart-topping games and was even accused of copying others, which it openly admits to. With an amazing history of innovations, a character like Mattrick was exactly what Zynga needed. The company has over $1.5 billion in cash; therefore Mattrick will have ample resources to invest in new strategic initiatives.

Conclusion

Mattrick may take time to effect a turnaround at Zynga but the comeback plan as mentioned in this article looks well thought out and methodical. It would not be prudent to write-off the company completely since it has got a decent cash balance, is looking to cut down costs, and is headed by a creative mind who can provide the much-needed spark to kick start the business.