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Zynga, Inc. Message Board

  • socialboom30 socialboom30 Jun 13, 2013 10:14 AM Flag

    Straight from the 10Q filed on May 1, 2013

    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.

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