Is Zynga a Buy With Mark Pincus Gone as CEO?

The following video is from Wednesday's installment of The Motley Fool's Weekly Tech Review, in which host Chris Hill, and analysts Eric Bleeker and Lyons George take a look at the biggest stories driving the tech sector this week.

In this segment, Eric and Lyons look at the recent news surrounding Zynga  (NASDAQ: ZNGA  ) and its hiring of Microsoft's (NASDAQ: MSFT  ) Xbox division head Don Mattrick as its new CEO. Investors greeted the news by sending Zynga shares soaring over 20% since the news broke. 

Seeing a stock that's fallen out of favor soar on the news of an executive departure isn't uncommon. For example, Groupon  (NASDAQ: GRPN  ) has more than doubled since the departure of CEO Andrew Mason in late February of this year. However, in the case of Zynga, Eric warns that the key problem with the company has been its products, and Mark Pincus is staying onboard as the head of Zynga's products. More so, he's a notorious micromanager who hasn't worked well with high-level executives brought in during the past couple of years. Investors hoping that Mattrick's hiring could solve the woes that have brought Zynga's stock back to earth could be disappointed. 

For the full video of this installment of the Weekly Tech Review, click here. Or, the segment with Eric and Lyon's full thoughts on Zynga and Groupon can be found below. 

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The relevant video segment can be found between 0:00 and 5:04.


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  • Report this Comment On July 05, 2013, at 3:05 AM, Bunnyking77 wrote:

    I wouldn't invest in Zynga, Don Mattrick is one of the main reasons Microsoft's XBOXone is being outsold by the PS4 and the Ouya.

    Zynga is just Don's golden parachute, the money that he is making after teh XBOXone debacle is one reason American's don't like CEOs outlandish pay out.

    He's making about $40-50 million for failures. Any other American would lose their jobs, but this CEO is making more money than 99% of all people make in their lifetime.

    Don't buy Zynga, they should have spent that money on talent, not a fail CEO.

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