Zynga Abandons Real-Money Gaming: What's Next?

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July 25 (Bloomberg) -- Zynga plunged as much as 16 percent in extended trading after abandoning plans to enter the online-gambling business in the U.S. Cliff Edwards has more on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

The company's future -- supposed to be a big part of the company's future.


The problem they discovered in the states that have a go -- legalized it, nevada and new jersey, you have to partner with a land-based casino.

Any profit they were going to get, they were going to be third in line.

The list that came out of new jersey show they did not find any partners.

Think it needs all the help it can get.

-- zynga needs all the help it can get.

It's a huge challenge.

At the end of the day, their pipeline is pretty bare.

The "farmville" folks on fake -- facebook are getting tired of playing the game.

They have defined a strategy for mobile.

It will be a big challenge.

Their daily active users at job by nearly half.

-- dropped by nearly half.

It shows that people are getting tired of these games, which are a repeat of each other with different titles.

The new ceo said on the call, it is clear the market opportunity around us is growing at an incredible clip and it is clear that today we are missing out on the platform growth that apple, google and facebook are seeing.

In short, we can do better.

What can he do?

A lot of zynga guys have left and are working on mobile games.

He can go out and try to scoop all of those guys up.

He can turn the teams right now to just sort of having at mobile games.

They did make acquisitions.

Omgpop, that did not turn out too well.

They have to make smart acquisitions when they look at these companies.

There are a lot of zynga guys out there doing interesting things.

Ready you see this going?

-- where do you see this going?

He knew when he came in that would be a very challenging situation for him.

When you look at it, their pipeline is bear.

If he can turn this company around, it will be more interesting than coming into a company that is stable.

This text has been automatically generated. It may not be 100% accurate.


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