Here’s Why Zynga Has Not Actually Abandoned Their U.S. Online Gambling Plans
Article explaining why investors shouldn't be fooled by a curve ball.
Read it! This will satisfy some, calm other, and enrage many but I thought I would share anyway. I included a couple excerpts from the article in quotes
[Here’s Why Zynga Has Not Actually Abandoned Their U.S. Online Gambling Plans]
By Chris Grove on July 29, 2013
"Adam Krejcik, Managing Director of Digital & Interactive Gaming for Eilers Research, summed it up well in his post-earnings Zynga analysis:
“In our opinion, the more prudent question to ask going forward is whether or not Zynga plans to pursue a B2B strategy (i.e. license its technology and content to third party operators),” wrote Krejcik, adding that “a B2B strategy makes much more sense for Zynga and while the revenue opportunity is significantly smaller, we believe this would be a much more viable and realistic solution.”
"So, here we are. Zynga is planning to focus on Zynga Poker, the cornerstone of any successful B2B strategy for the U.S. real-money market. Meanwhile, they’re not pursuing any license to participate in that market, but they are continuing their UK-facing “test” of real-money gambling.
How is that any different from the world before Zynga’s recent announcement?"
The point I have been trying to make is RMG is not the say all be all. Also it is not hurting Zyn to wait on it. Moreover they are not giving up on it. Hence international trials in U.K. There is hardly any internet gambling going on in the U.S right now. There will not be much going on in Jersey the last month of the year. Furthermore they are not missing the action currently. Why do you think the share price has followed the same pattern a few times over despite the good news and bad news being different each time?