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Zynga CEO says stock slide not hurting recruiting
May 30, 2012 / 6:33 PM / 5 years ago

Zynga CEO says stock slide not hurting recruiting

RANCHO PALOS VERDES, Calif., May 30 (Reuters) - Zynga Inc Chief Executive Mark Pincus said the recent slide in the company’s stock price has not hindered employee recruitment, and it was too early to tell whether the $183 million purchase of the game “Draw Something” has been a success.

Pincus said Zynga had “talks” with the company that makes the popular “Angry Birds” game in the past, in response to a question about whether Zynga had tried to acquire the game.

“We think that we’re learning by meeting these teams, and sometimes there’s a good fit and sometimes there isn‘t,” Pincus said at the All Things Digital conference in Rancho Palos Verdes on Wednesday.

Zynga, which went public last year, has seen its shares fall 25 percent since Facebook Inc’s disappointing IPO. Zynga generates a significant portion of its revenue from games that are used on Facebook’s online social networking service.

Despite the sell-off in many social media company stocks, Pincus said he was optimistic about the new crop of Web companies and Zynga’s lower share price had not made it more difficult to attract talent to the San Francisco-based company.

“I can’t think of any real difference in recruiting that’s happened because of being public or because of our stock being up or down,” he said. “If your stock’s up, some people are more excited about the company, if your stock is down, some people think there’s more upside to the stock.”

He also defended the company’s March acquisition of OMGpop, maker of the game “Draw Something,” for $183 million. The mobile application’s surge in growth has leveled off since the purchase, leading some observers to question the deal.

“We didn’t buy them for the short-term impact,” Pincus said, noting that the game has more traffic today than when Zynga “engaged” to buy the company.

Asked if he considered the acquisition to be a success, Pincus said it was too soon to tell, and that the success will come from integrating the game into Zynga’s service and adding new features.

On Wednesday, Zynga’s shares were down 2.7 percent at $5.92 in afternoon trading.

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