This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Zynga CEO Needs to Whack Headcount

NEW YORK ( TheStreet) -- It's been three months since Don Mattrick took over as CEO of Zynga (ZNGA - Get Report).

First, here's the good news.

Don's already well-regarded by the troops within the company. He's brought a sense of urgency and accountability to the company that was lacking before. He's questioning people and the "same old same old" process they've always followed to doing things at the company.

And there's probably even a little bit of fear that Don is sizing up specific employees and specific divisions. They're likely thinking, "If he doesn't think I'm/we're adding value, he might be thinking of getting rid of me/us."

That's a healthy sense of paranoia.

Here's the other bit of good news for long-term investors: So far, it seems that Mark Pincus is letting Don take full charge of this company. From what I understand, after welcoming Don in to the company in July and showing him where the cafeteria was, Mark quickly left San Francisco for an extended Hawaiian vacation.

I think that was a great move to let Don be Don. No henpecking from Mark. No, "Oh, I wouldn't do that; you should do this" second-guessing. It may still be Mark's company, but he was staying true to his word to stay out of the way.

That's very important. Recall that Ben Horowitz wrote a famous blog post after Mattrick's hiring saying that essentially Mark would never give up control and that Zynga employees were going to struggle figuring out who to report up to on certain matters.

From Ben's blog (quoting the Geto Boys):

Cause two suckers can't agree on something a thousand mutherf**kers die for nothing

All indications to date suggest that there is not shared command at Zynga today. There's Don's command with the tacit approval of Mark and the Zynga board.

By the way, nobody ever talks about it, but I think Zynga has one of the best boards in Silicon Valley. John Doerr, Bing Gordon and Reid Hoffman are on this board (among others). Of course, Doerr and Gordon are there because Kleiner Perkins Caufield & Byers still has a huge investment in Zynga, and one day they want to cash out at much higher levels than $3.50 a share. That they and Hoffman are there in the first place, however, is a testimony to how highly they think of Mark Pincus and how big they still believe Zynga can be (and it can).

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ZNGA $2.31 -0.86%
AAPL $130.42 1.26%
FB $80.41 1.07%
GOOG $555.48 2.13%
TSLA $207.19 1.68%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs