Total assets $2,522,836,000
The asset column includes "Goodwill" of $208,000,000
Total liabilities $659,000,000 This includes debt of $100,000,000 which we know has been retired.
This simple math says in a fire sale the company holds $1,863,836,000 in clear value. The market cap this morning is $2,215,000,000 or $352,000,000 more than the assets.
Now I believe the total assets are higher as the column for assets that excludes property only shows $30,000,000 So you could assume that the Goodwill and non property together include the patents, and code and titles. So to buy into this math you must believe that All the games, Farmville2, Poker, Words With Friends, etc.. plus patents, plus, trades secrets, are only worth $230,000,000
I believe the company is now trading significantly under it's asset value.
It is important to note, the company is losing money and revenue has been in decline. The company needs to find a way to stabilize revenue or continue to layoff employees and reduce expenses to keep pace, otherwise the cash on the balance sheet will be in jeopardy.
It is also important to note that a $50,000,000 loss per year only represent 3% of current cash.
Why would anybody pay $352M for a company losing money? People should be buying companies that actually make money and return some to the shareholders if they are publicly traded. ZNGA would be better of closing down and just putting the cash to work collecting dividends somewhere in an offshore account.
If you consider that this quarter's estimate is only forecast to change by $2.5 million with an additional $27 million in severance costs added and bookings in the "lower half" of range, it would indicate that they have increased ad revenue significantly .. increased ad revenue is what caused Pandora to climb rapidly ... and, for the record, Zynga seems to be aggressively targeting booking and ad revenue .. they know the issues ... we will be fine
I actually don't think the street cares where the money comes from as long as it shows up. The reason the stock is so low is "declining revenue".
If they can stabilize the revenue the stock will rip... And that may be easier thru an advertising model that is growing. I'm sure advertising is looking for more and more avenues to connect to mobile devices. We will just have to see...
I still say in order for the stock to rip upward the company must do something right... Anything...