What if ZNGA laid off everyone but the most basic persons to manage only the most lucrative games, like Farmville, Texas Hold'Em etc. Ceased all spending on research and put everything up for sale as is. The gambling sites that are in development, the patents the chairs, computers, desks, the building in SF,,, all of it...
What's it worth?
You have 1.32 billion in cash against 100 million in debt.
You have a large San Francisco office building worth somewhere north of 250 million.
You now hold around 100 online gambling patents.
You now have an agreement that allows you real online gambling in the UK.
You have mountains and mountains of gaming code.
So what's it worth? If you froze everything in it's tracks right this second and had a fire sale would you have enough to cover the 1.92 billion market cap from Friday's close?
on-line gaming for real cheese is gonna be huge, and it's only going to get bigger as more countries legalize it in order to raise much-needed revenues.
it's only a matter of time before on-line gaming for real money gets legalized i the good old u s of a. i'm looking for both znga and facebook to makes good use of the nevada partnerships they've entered into. agree with socialboom, I think znga is an excellent long-term buy at these levels. and just for the heck of it, I share the same opinion about facebook under $30.
The book value right now is $2.38. Book value doesn't include business value. ZNGA spent $200 million for one game. How many games does ZNGA have? the office building, it's appreciating! Patents?
at least $4 liquidation value
Well I don't think the 200 million spent for draw something was money well spent but it does not change my math.
The company should have a liquidation value of more than its current market cap. Therefore to bet on it going or staying lower is to bet that the current management will somehow take the cash, patents, code, real estate, and the like and give it all away.