Can facebook now replace ZNGA expense now with Karma Mgt
With their new aquisition on friday of Karma, their management team has real experience making game apps and monetizing the on mobile. I would think this means FB can save money and do most in house what ZNGA does for them eventually in their own way.
Now that FB has the money, it seems to make sense that they could do all this in house, Zuck can control, and they can keep competitors at a disadvantage.
This would leave ZNGA out in the cold like a red headed step child who continues to loose money.
With this new move, FB is holding all the cards and ZNGA is in a poor position to negotiate.
Once the mainstreem financial media picks up on the background of the Karma management, I think ZNGA could get hurt.
Looks like a longer term short.
Read the article, thoughts anyone? Any facts to go against this premise? Could be significant dive.