It'll go to $4 tomorrow and $5 Thursday. This is just the beginning of online gambling and between the shorts having to cover and the possibility of ZNGA looking as an attractive buyout candidate for IGT,FB,EA,NFLX, and numerous other companies;this is an easy double!!!!
I don't see why it wouldn't close around $4 off of this news... I think there will be an obvious pullback after tomorrow though. GLUU didn't soar too high for long after their UK Live announcement... Should form a new, higher base that'll prepare for the quarterly report and results from the launch.
I have seen no specifics on any revenue sharing agreement between ZNGA and Bwin. Starting a few games with an established outfit and actually producing bottom line revenue are two different things. The prevailing assumption on the board is that ZNGA will be minting money in short order. That's great for tomorrow's momentum play,but we have an upcoming problem with the soon to be released earnings. From ZNGA's perspective, the timing couldn't be better, as it may allow them to ride the storm for the moment. Longer term, there are significant structural problems facing the company. Without gambling revenue, ZNGA has a failed business model, so the company's entire future rides here.
Okay Odonnell, I read your latest diatribe reluctantly ... unbelievable the way you and chas can swap back and forth from trying to sound reasonable and just saying things like Zynga will be bankrupt after legal fees ... you are ridiculous ... revenues will come from casino fees, ad revenues, and RMG ... Zynga has cut costs and improved FB revenue sharing terms ... Zynga has improved ad revenue techniques with games ... Zynga has multiple mega hits coming ... but, keep up your diatribe ... you'll likely scare thousands away ... just like you did by saying the UK launch was not going to happen for months, if ever ... even after I pointed out where bwin said it was "weeks away" ... I would go on but I'm on an annoying iPhone and its hard to type ... I won't be reading you again
I think you can experience a nice ride tomorrow and it should be enjoyed. I tend to think smart money won't wait long to sell into temporary strength. Mr. Pinus in his recent statements was very reserved about making any projections on revenue from this joint project. He's already facing litigation from the secondary offering, so it was nearly mandatory for him not to paint a misleading picture. He knows actual profit from online gambling is far off in the future. The deal with Bwin is testing ground, not much more. Show me the specific wording of the agreement with Bwin.