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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Zynga Buys NaturalMotion For $527M, Beats on Earnings

NEW YORK (TheStreet) -- Social gaming company Zynga (ZNGA) 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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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