Zynga's Botched Acquisition Goes OMGPOP

It's been a long fall from glory for social-gaming dynamo Zynga  (NASDAQ: ZNGA  ) . The list of strikes against the company is long, including the its wildly overvalued purchase of competitor OMGPOP last March for the tidy sum of $180 million. Fast-forward to today, and news has now broken that Zynga is planning to shut down its pricey subsidiary, aside from its still-popular Draw Something game. To be fair, the tide has changed completely against the company since the deal closed. We've seen growth slow and a steady stream of executive departures. However, as Fool contributor Andrew Tonner argues in the following video, there are plenty of lessons to be learned from this tech cautionary tale in the making.

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Read/Post Comments (8) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 25, 2013, at 7:50 PM, Texasrecurve wrote:

    Seriously, and I'm not kidding here. What exactly is Motley Fool's and the Gardner brother's motivation for these Zynga articles?

    Yet another Zynga trashing article/video, one of dozens upon dozens of the same from MF over the last few months. You're telling us about the OMGPOP acquisition? Are you kidding me? You've told us that story a hundred times! We know it by heart! Everything in this video is rehashed, hashed and rehashed again. You've told us to AVOID this company 200 times. OK!! We got your message months and months ago! Its so obvious that MF has something going on here under the radar.

    Most amazingly of all, not one word about the only thing concerning this company that's even newsworthy.........the hiring of Don Mattrick as CEO. A game changer. See the September issue of Fast Company magazine if you really want to learn what's going on in this company.

    I'm calling these Gardner brothers OUT, right here and right now. Use your own comment section to tell us exactly what your motivation is concerning Zynga. I can spot a lie from a mile away, so be careful in what you write. You HAVE a motivation, if you deny that.............you're busted. So tell us what it is.

    Again, I'm CALLING YOU OUT, right here, right now.

  • Report this Comment On August 25, 2013, at 11:17 PM, gamedude wrote:

    it's quite apparent to me that motley fool emplodees have very small paychecks, In order for them to attempt to accumulate cheap shares they must continaully attack this company as if they have no chance in hell of ever making a comeback>?

  • Report this Comment On August 25, 2013, at 11:35 PM, VivaZynga wrote:

    I wonder whose paying David Gardner and his followers to continue writing frequent and repetitious negative articles about Zynga? These misleading and malicious in nature articles must stem from personal experiences/agenda and could be the basis of a class action lawsuit by Zynga share holders - based on the ground that they interfere with economic advantage of Zynga share holders.

    I support a company with greater talents, expertise and creativity, billions of dollars in cash, no debts, ability to create games that I along with millions of players enjoy and come together from across this world, a CEO that was responsible for creating the most successful efforts of Microsoft. David Gardner, you will regret your position in the months to come.

  • Report this Comment On August 25, 2013, at 11:37 PM, bottomfisherman wrote:

    This is very old news and has been beaten to death by you and others. Do you not have anything else you could possibly say?

  • Report this Comment On August 26, 2013, at 1:36 AM, Texasrecurve wrote:

    -------could be the basis of a class action lawsuit by Zynga share holders - based on the ground that they interfere with economic advantage of Zynga share holders------

    VivaZynga, now you're talking. I would join that suit in a New York minute. As a matter of fact, I'd be willing to initiate such an action.

    These clowns, or "fools" as they like to be called have an ongoing jihad against this company. As a place to get unbiased investment information, MF is a joke.

  • Report this Comment On August 26, 2013, at 7:01 PM, Texasrecurve wrote:

    Its coming up on 24 hours and all I'm hearing is crickets.

  • Report this Comment On August 26, 2013, at 11:32 PM, Mega wrote:

    Texasrecurve

    Seems to me you're all hat and no cattle. Go ahead and file a lawsuit against The Motley Fool. It will be good for a laugh.

  • Report this Comment On December 19, 2013, at 6:24 AM, CamSpark wrote:

    You can still play OMGPOP games on www.CamSpark.com free of charge, and you keep your old account too!

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