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Zynga, Inc. Message Board

  • blueskydriving blueskydriving Mar 2, 2013 11:39 AM Flag

    Getting Real ... likely scenario is a bwin and Zynga merger

     

    If anyone reads the bwin original press releases from the announced Zynga relationship, it is clear that bwin desires a move into a social real money audience ... that is all bwin has ever wanted ... they already tried one merger with a much smaller European company to achieve that goal ... the likely outcome in the U.S. market is a merger of bwin and Zynga ... bwin has the operational platform and expertise ... Zynga has the social gaming reputation and audience ... does anyone really think that Pincus is going to let this opportunity to make Billions and become the global leader simply pass by ... so, if you are under the age of 40 then load up on Zynga and be rich(er) in 2-3 years ... if you are over the age of 40 then go to GNC and buy your self some High T then load up on Zynga and wait 2-3 years to retire ... glta

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    • Why 2-3 yrs? Will it take that long for BWIN to buy out Znga or even znga to be able to get into online gambling? If they are not in it by the end of this year they are not in it at all. Mark my words. before November one of those two is going to happen and znga will be trading over $8

      Sentiment: Strong Buy

    • point-taken@att.net point-taken Mar 2, 2013 12:15 PM Flag

      There is always speculation when a company is on the verge of something new. I think you make a good assumption with bwin. But I don't see any offers to merger or takeover with ZNGA at the present time. I think other companies are taking a wait and see approach. Like with the Right Brothers and their flying machine. "Yeah, it's logical. But let me see it fly before I drop my cash down." There are unknowns with online gambling at the magnitude being discussed. And there are other smaller players joining the Frye. I think bwin and others will wait to see how things take off. And, if promising, there could be a bidding war. Or, ZNGA may opt to stand alone and/or buy-out smaller companies to become a force to be reckoned with.

      No matter how you slice this pie it's still going to be a BIG pie. Can't wait for them games to begin!

      • 2 Replies to point-taken
      • That's Wright Brothers - You idiot !

      • I think the M&A or partnership opportunity will take place very fast. I would be surprised if we had to wait past July 4th.

        Real money gaming under a partnership will be underway before June 30 and by that time many unanswered questions will be known by the management team if not yet the shareholders.

        Will the Zynga casual audience try real money gambling? What ARPU will it achieve? How much time on site? What games generate what revenue?

        The very instant they can answer these questions rather than speculate the business opportunity becomes much easier to calculate.

        I feel like the management team will not enter into any additional arrangement until they can value the opportunity. I also feel like that path will lead to the greatest shareholder value.

        It's a very short road to July but it's not tomorrow.

        Now with all that said the market cap on ZNGA remains dangerously low relative to book value. We know that book value is supported by 1.65 billion in cash and real estate, so there remains the possibility of a potential unwanted takeover attempt. Such an attempt would provide an instant lift in PPS but could also bring distraction at a time when we need the teams focused like a laser on the business in front of us.

 
ZNGA
2.56+0.12(+4.92%)11:00 AMEST

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