Zynga Shares Soar on Hopes of New CEO
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of social gamer Zynga have soared today by as much as 13% after AllThingsD reported that the company may get a new CEO.
So what: Microsoft entertainment and gaming exec Don Mattrick is reportedly leaving the software giant and heading to Zynga to take a high-level position. Investors are expressing optimism that Mattrick will take over as CEO following Zynga's fall from grace under current CEO and founder Mark Pincus.
Now what: Mattrick has been at the center of Microsoft's controversy over its Xbox One, and the exec has extensive experience in the gaming industry. Zynga went public at $10 per share in late 2011, and is in desperate need of a turnaround. In April, Pincus agreed to cut his salary to $1 as a symbolic gesture. A month ago, the company laid off nearly a fifth of its workforce, which is expected to save $70 million to $80 million. If the reports are accurate, Mattrick's salary would be far more than $1, but hopefully investors will get something for what they pay for.
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The article Zynga Shares Soar on Hopes of New CEO originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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