Navigate this market better. Subscribe for FREE stock alerts and information.

Thursday, January 30, 2014

Zynga attacks costs, to slash headcount by 15 percent, (NASDAQ: ZNGA)

Zynga Inc will slash costs in 2014 by shedding 15 percent of its workforce, the company that developed "Farmville" said on Thursday, adding that it will bolster its pipeline of new mobile games by buying game developer NaturalMotion for $527 million, moves that sent its stock up 20 percent after hours.The San Francisco-based game company said it expects to cut 314 jobs as part of an expanded cost savings plan. Zynga also posted a narrower-than expected quarterly loss, and its shares soared to $4.26 after closing at $3.56 on the Nasdaq.Zynga said it acquired NaturalMotion, which has created games like "Clumsy Ninja" for Apple mobile devices, for $527 million in cash and stock in a bid to grow its mobile game revenue."The missive is kind of the framework of a turnaround," Mike Hickey, an analyst at the Benchmark Company, said.

Zynga Inc. (Zynga) is the provider of social game services. Shares of ZNGA traded higher by 4.09% or $0.14/share to $3.56. In the past year, the shares have traded as low as $2.50 and as high as $4.55. On average, 20431300 shares of ZNGA exchange hands on a given day and today's volume is recorded at 28238468.