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Zynga, Inc. Message Board

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    • ...and, it appears Zynga will not be able to be a primary license holder - per today's WSJ:

      "Most of the changes under consideration would prevent non-gambling companies, like Zynga, from becoming primary license holders. They could, however, become a partner with a license holder under some bills being considered."


    • "ZNGA is no different in how they'll end up marketing themselves and will find their niche as well."

      Their niche: Internet mom's betting 1/10th of a penny, and raising a full he-penny on the last card...if they have a full house. :)

    • >> But I think the major players win the lion's share of the play. <<

      I agree, but right now the options are some off-shore, unregulated, virtual casino that you have no clue is legit or a pickpocket.

      If you had your choice and were playing for real money, would you tend to go someplace that you weren't sure if you were getting a fair shake or would you feel more secure at a US regulated online casino?

      Also, all casinos present a certain ambiance that attracts a certain clientele... Caesar's, Hard Rock, Bellagio, etc.

      ZNGA is no different in how they'll end up marketing themselves and will find their niche as well.

    • So online gambling is on the way...though there will be a gap between figuring it out it will take shape and who will be the leaders.

      Not sure I understand why gamblers will flock to Zynga for real gambling. I get why the Internet-moms, already accustomed to Zynga poker would stay with it. But for current gamblers, it seems like they would be more at ease with one of the Casino names.

      Developing the s/w is not a big deal, right?

      Dealing with gambling regs and having contacts in various states is also something the big gambling companies already have.

      So if they don't need Zynga for branding (and their brand is stupid internet games anyway) and they dont need them for gambling-industry expertise, what do they need Z for?? S/w? That's the easiest piece of all this.

      The above is more of a medium term issue. In the short term, if Z's game stats keep falling, and the general mkt turns down (as most the experts I follow says its about to), not sure I would be holdin' this stock hoping for world domination in the gambling space.

    • zynga has the Millions of viewers...... anyone that gambles will stay with the name recognized to them. PLUS, they have the dough for infrastructure / rollout of site, lawyer costs, licensing costs etc. All these things, in multiple countries cost MIIIIIILLLLLLLLLLLLLLIIIIOOONNNNSSSS to do.

    • two lines from the article do not add up:

      Although a new revenue stream could do marvels for the company's fortunes,

      But it still seems like a long shot and one that shows some desperation on Zynga's part.

      Not a logical conclusion. The author makes no mention of the recent DOJ ruling that clears the way for online gambling and why is it an act of "desperation" if the new revenue stream 'could do marvels"? Seems like a calculated move to take part in what has been estimated to be a 5-6 billion dollar per year market.

      The world of gambling is about to be disrupted in a big Caesars latest investor presentation, which can be viewed here:

      Slide 17 list Online Gaming as the Industry's next evolution.

      Point being, I don't think leveraging a platform the size of Facebook to enter a multi billion dollar market is anywhere near an act of desparation.

      All....mho......of course.


      • 1 Reply to fortunes_formula
      • moving from dominating family and friends gaming - where it is showing kinks in the armor - to a whole new sector - which has not taken shape - and IF it does take shape, Zynga will either use its brand - and therefore change its brand - or not use its brand and compete against companies with much stronger brands (Cesar's, etc.)

        Regardless, what you have in the near future is this. The crescendo from the entry into the gambling space probably maxed out today. It will take over 6 months and perhaps a year for the states to decide what they will do. In the mean time, if present trends continue, Zynga will continue to lose its lead in Internet gaming. Add to that the end of the lockup period and likely fall in the general market after this recent ebb.

        Good luck to the longs as you will surely need it. ;)

    • some quotes from the above link...

      Bloom is off the Farmville rose

      It's yet another variation on a freemium play, which isn't necessarily a bad thing. But to be successful, a company must keep turning some low percentage of unpaid customers into paying ones. And Zynga is headed in the wrong direction. According to Bhatia, data from apps metrics site AppData showed that the number of daily active users dropped from 54 million to 51 million between the third and fourth quarters of 2011.

      That trend seems to be continuing. According to AppData, daily average users dropped by nearly 2.3 million in the last week. Monthly average users were down by close to 2.5 million. If the number of users drops, the company will need to do one of two things: Either it has to convince paying customers to increase their spending, or it must convert more of the free players into ones who will pay.

      Either one of those will be tough to pull off. In fact, Bhatia's estimate of 20 percent growth for the company assumes a 15 percent increase in the number of paying customers and then more spending by all the payers.

      Gotta find another line of work
      Getting higher conversion rates isn't unheard of. YouSendIt vice president of product and business strategy Brian Curry told me last fall that his company had seen conversion rates among certain groups jump by 40 percent. But that doesn't just happen. YouSendIt had to build additional services that brought more value to users.

      But Zynga's pattern of decline in average users has happened despite the introduction of new titles. "In fact, currently, ZNGA appears to be generating less traffic versus a year ago despite having twice as many titles since then," Bhatia writes. A graph from his report clearly demonstrates the point.

2.52+0.10(+4.13%)Aug 28 4:00 PMEDT