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Possible Problems Down the Road for the New Zynga CEO

In the following video, Fool contributor Matt Thalman discusses why he thinks a few problems may arise in the future for Zynga's (NASDAQ: ZNGA  ) new CEO, Don Mattrick, and the company's founder and former CEO, Mark Pincus. Pincus started Zynga from scratch and built it to the company that it currently is, and although he's now passing the reins to the next guy, he will still be the chief product officer and chairman of the board and will control 61% of the voting rights. While time will tell whether Pincus can fully relinquish control of his company to another guy, shareholders will be along for the ride, and it's not one Matt wants to be on.

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Read/Post Comments (3) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On July 10, 2013, at 10:56 PM, GudDanMan wrote:

    I am still quite amazed at how much negative press The Motley Fool gives Zynga, constantly warning investors to stay clear. I remember the same warning signs given to Netflix along the way, while recommendations of Apple and Activision have been wrong. The problem with being Nostradamus is fortune telling is a bit of a sham. When the history turns out to be different, and it will never be exactly what you are thinking (because obviously you can not predict the future), we will be able to go back and read these articles and say either The Motley Fool was right, or The Motley Fool got it wrong... For now "The Game Over" comment needs to be ratcheted down... until it really does look like game over. But it's not Game Over, and companies go up and down. I think Zynga has as much potential as Facebook, especially on mobile and especially in gaming. Facebook and mobile is bad combo. I hardly use Facebook and I really can't much through it on the mobile so I don't use it. Find out how many people use Zynga games on mobile and it's like 4 times the Facebook time, and I believe mobile is going to only get bigger.

  • Report this Comment On July 11, 2013, at 2:10 AM, Alorichardlee wrote:

    Good point of 61% holding.

    Can issue new stocks and out run old one by percentage wise, isn't it

    Watching how this play out?

    Then what is stock investor get then? Watching other winning and losing as matures or stock outsiders?

    Old CEO didn't accept other opinions and that is not a boss material at all.

    New one should be better as a real listening to change to better boss. That is enough for me to invest to Zynga instead of as watchers...JMO

  • Report this Comment On July 11, 2013, at 8:23 AM, tunei wrote:

    Motley Fool,

    Do you think Don Mattrick is very fool to take that job because he has wanted a life long friend Mark Pincus with whom he can ride a bike together everyday until the sunset? I do not think so. CEO Don Mattrick and Pincus must have a very big plan that is beyond your imagination and that will surprise the tech world. There is no reason to assume that to invest with ZNGA is a gambling, but is a wise investment.


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