This Day On The Street
Continue to site
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

Zynga's Biggest Threat: Mark Pincus

"I've heard anecdotally that entrepreneurs are cautious about selling to Zynga," said an investment banker who works closely with gaming companies. "People would love to get acquired by a Google or Facebook because there's a certain cache and that's not there right now with Zynga."

Angry Birds maker Rovio reportedly turned down a $2.25 billion acquisition offer from Zynga.

Pincus' hard-driving personality and iron-fisted control over Zynga may also turn off employees. The CEO scored just a 46% approval rating among employees on career services firm Glassdoor, compared to an average approval rate of 62% of other chief execs on the site.

"Talking to colleagues and former Zynga employees, Pincus is considered somewhat difficult by pretty much everyone that knows him," said Max Wolff, a senior research analyst at Green Crest Capital who does not know Pincus personally.

Pincus isn't selling any shares in the IPO and will hold a class of shares that have 70 times more voting power than the common stock sold in the offering. Such a voting structure is unusual among tech companies, including newly public LinkedIn and Zillow (Z) where certain shareholders had 10 times more voting power than public investors.

This move was likely made by Pincus to keep a large pool of shareholders from holding too much power in the company.

"He's the imperial CEO," said Wolff. "He's not going to lessen that white knuckle grip on voting rights in a post-IPO environment."

Zynga did not respond for comment about this story.

-- Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:
2 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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $683.57 -3.45%
LNKD $108.38 -43.63%
AAPL $94.02 -2.67%
FB $104.07 -5.81%
TSLA $162.60 -7.26%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs