Zynga Gets Acquired
Zynga has had a rough 2012, that's for sure. The company has lost nearly three-quarters of its value, important executives have
left the company
, and Facebook recently distanced itself from the game maker.
CEO Mark Pincus still owns a significant portion of the company (50.15% of the voting rights as of August), despite having sold off significant amounts of stock in the initial public offering and subsequent offering earlier this year.
Zynga, best known for its
Words With Friends
is trading at extremely cheap levels. It has almost enough cash on hand (about $1.6 billion at the end of the
) to equal its market cap ($1.8 billion). Zynga is still generating cash flow from operations -- $30.1 million in the third quarter -- and it owns a valuable piece of real estate, its San Francisco headquarters.
a tweet that said going private should be an option for Zynga. Given the amount of cash it has on hands, it's not out of the realm of possibility to see a management-led buyout on this one.