The comapny is lowering revenue expectations and writing down half of OMGPOP's value
Zynga hasn't been doing great lately. It hasn't been doing great for quite a while now, since it went public. But it's getting worse, in its latest financial preview for the third-quarter, Zynga warns of lower than expected revenue and a huge write down for OMGPOP which it acquired earlier this year.In a completely surprising twist, OMGPOP, which had just one hit app under its belt, an app that had become very popular only weeks before Zynga acquired the company, didn't turn out to be the huge cash cow Zynga hoped it would be.
Zynga is writing down between $85 million and $95 million, about half of what it paid for OMGPOP. Given the lowered revenue expectations for both the third quarter and the full year, it's no wonder that Zynga stock is getting pounded in after-hours trading.
It's now trading at almost 22 percent lower than yesterday's closing price and it doesn't look like the fall is slowing down.