This Day On The Street
Continue to site right-arrow
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 Buys NaturalMotion For $527M, Beats on Earnings

NEW YORK (TheStreet) -- Social gaming company Zynga (ZNGA - Get Report) announced Thursday a $527 million cash and equity acquisition of privately-held, UK-based mobile game developer NaturalMotion, in an effort to accelerate the company's mobile growth.

The San Francisco-based firm also said that it's implementing a cost cutting plan that will include a 15% workforce reduction of about 314 employees and lowering its spending on datacenter infrastructure. Zynga estimates that its cost reduction strategy will lead to pre-tax savings of $33 million to $35 million in 2014.

For the fourth quarter, Zynga reported a net loss of $25 million, down from the loss of $49 million in the year-ago period, but up from the third-quarter net loss of $68,000. The company lost 3 cents on a per share basis, topping estimates by a penny.

Bookings came in at $147 million, a decrease of 44%, but still beating estimates by $6 million.

Daily active users (DAUs) came in at 27 million, down from 56 million in the fourth quarter of 2012. DAUs were down 12% sequentially.

Zynga is upbeat on 2014 bookings, expecting $760 million to $810 million in bookings versus the Wall Street target of $629 million. However, the midpoint of the $138 million to $148 million bookings range falls short of the average analyst estimate of $146 million.

Shares were surging nearly 20% to $4.28 in after-hours trading.

-- Written by Andrea Tse in New York.

Follow @atwtse

>Contact by Email.

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!
ZNGA $2.41 0.84%
AAPL $126.41 -1.66%
FB $81.21 0.39%
GOOG $575.33 0.34%
TSLA $200.63 -0.89%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

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