Zynga plummets 20% after cutting 2012 outlook |
| CNNMoney - Oct 5, 2012 |
Zynga's $183 million acquisition earlier this year of "Draw Something" maker OMGPOP has turned into OMGNO.
The social games maker unveiled "preliminary financial results" Thursday evening a few weeks ahead of its official earnings report -- which is rarely a sign of anything good -- and scaled back its outlook for 2012. Zynga also said it will take $85 million to $95 million write-down on OMGPOP, wiping out half of the deal's value.
Zynga now expects bookings for the full year to come in at about $1.1 billion, down from its previous forecast of $1.15 billion to about $1.23 billion. Earnings before interest, taxes, depreciation and amortization are forecast to come in between $147 million to $162 million, compared the $180 million to $250 million that Zynga previously expected.
Shares were down about 20% in morning trading on Friday.
It's been a challenging year for Zynga, which made its name by creating games for Facebook (FB). Zynga blamed much of its downgraded 2012 forecast on "reduced expectations for certain web games including The Ville, and delays in launching several new games."
Read Full Article from CNNMoney
- Posted: 2012-10-05 13:08:26
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