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Facebook IPO Puts Spotlight on Zynga

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage.

NEW YORK (Trefis) — Zynga(ZNGA) is the leader in social gaming and is charging forward in the mobile gaming space by acquiring mobile gaming studios and launching new mobile games on iOS and Android. We know that almost all of Zynga’s revenues are generated by Facebook, but recently, after Facebook filed its S-1 for an IPO, it was revealed that Facebook depends on Zynga, too.

According to its S-1 filing, Zynga accounted for more than 12% of Facebook’s overall revenue in 2011. Facebook even explicitly listed its dependence on Zynga as a risk factor. Zynga competes primarily with Electronic Arts(EA), Playdom which was recently acquired by Disney(DIS) and other independent social gaming studios. New Games account for over 40% of Zynga’s $10.20 Trefis price estimate. Our price estimate for Zynga accounts for dilution due to stock options and restricted stock, which results in a deflated value.

Check out our complete analysis of Zynga.

A lot of companies whose businesses are tied to Facebook saw their stock prices rise following the IPO filing. Zynga, which was trading under $10, its IPO price, since it went public, saw its stock price rise to an all-time high, before settling almost 25% above its IPO price at $12.4.

Since there is a high degree of correlation between Zynga’s revenue and Facebook’s revenue, some analysis of Facebook’s Q4 2011 numbers suggest that Zynga will see significant revenue growth in Q4 2011, much higher than expectations.

Zynga is currently planning to enter the online gambling market with its Casino social games like Poker and Bingo. We expect a significant revenue boost should Zynga succeed in entering the lucrative online gambling market in the coming years.

Zynga’s other new games like Hidden Chronicles and Scramble with Friends are also expected to attract more and more casual gamers in the coming years, and generate increasing amounts of revenue.

Click here to find out how a company’s products impact its stock price at Trefis

Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.

To order reprints of this article, click here: Reprints

Facebook IPO Puts Spotlight on Zynga

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage.

NEW YORK (Trefis) — Zynga(ZNGA) is the leader in social gaming and is charging forward in the mobile gaming space by acquiring mobile gaming studios and launching new mobile games on iOS and Android. We know that almost all of Zynga’s revenues are generated by Facebook, but recently, after Facebook filed its S-1 for an IPO, it was revealed that Facebook depends on Zynga, too.

According to its S-1 filing, Zynga accounted for more than 12% of Facebook’s overall revenue in 2011. Facebook even explicitly listed its dependence on Zynga as a risk factor. Zynga competes primarily with Electronic Arts(EA), Playdom which was recently acquired by Disney(DIS) and other independent social gaming studios. New Games account for over 40% of Zynga’s $10.20 Trefis price estimate. Our price estimate for Zynga accounts for dilution due to stock options and restricted stock, which results in a deflated value.

Check out our complete analysis of Zynga.

A lot of companies whose businesses are tied to Facebook saw their stock prices rise following the IPO filing. Zynga, which was trading under $10, its IPO price, since it went public, saw its stock price rise to an all-time high, before settling almost 25% above its IPO price at $12.4.

Since there is a high degree of correlation between Zynga’s revenue and Facebook’s revenue, some analysis of Facebook’s Q4 2011 numbers suggest that Zynga will see significant revenue growth in Q4 2011, much higher than expectations.

Zynga is currently planning to enter the online gambling market with its Casino social games like Poker and Bingo. We expect a significant revenue boost should Zynga succeed in entering the lucrative online gambling market in the coming years.

Zynga’s other new games like Hidden Chronicles and Scramble with Friends are also expected to attract more and more casual gamers in the coming years, and generate increasing amounts of revenue.

Click here to find out how a company’s products impact its stock price at Trefis

Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.

To order reprints of this article, click here: Reprints

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Daily Spoiler Chat: Glee's Kurt and Blaine, Revenge Death, Grey's Anatomy Couples Scoop and More!

Darren Criss, Glee, Ellen Pompeo, Grey's Anatomy, Joshua Bowman, Revenge Fox; ABC; ABC

Ask and ye shall be spoiled!

Many of you readers have been telling us you want the Spoiler Chat (our roundup of exclusive TV spoilers and scoop) more frequently than once a week. So this week, we’re going to try something new: Daily Spoiler Chats. Are you all tingly everywhere? If so, you really should get that checked out.

It’s all the same scoop you’ve come to know, just, you know, more. Read on for exclusive answers to your big, burning questions about Glee, Grey’s Anatomy, Revenge, The Vampire Diaries, How I Met Your Mother and more!

MORE: Will Klaus and Caroline hook up on The Vampire Diaries?

Darren Criss, Chris Colfer,Glee Fox

LillianaLee: Glee me up! Please tell me that Blaine and Kurt are not breaking up!
In my “instant scoop” post on this week’s Ricky Martin episode, I mentioned that there is a teeny-tiny moment (with Rachel) where you see Kurt is not ready yet to marry Blaine (Darren Criss). I do think that little moment is a small seed to let us know that it is entirely possible that Kurt (Chris Colfer) may be shipped off to NYADA this fall, and Blaine, as you know, is not graduating. Can those crazy kids keep it together? Time will tell, but for now, a solid source tells me: “Blaine and Kurt are still very much a couple and there aren’t any plans right now to break them up.” Phew! Let’s toast to that with a rock-salt-less slushie, shall we? And light a candle for season four?

Phoebe: Anything new on Glee?
Not only will we see the hunky Matt Bomer play Blaine’s brother Cooper, but we also get a flashback to their childhood! Sources tell us they are casting the roles now. Who doesn’t want to see a young Darren Criss and a young Bomer? If you raised your hand, then reevaluate your life decisions.

MORE: Castle stars dish on flashback episode

Sandra Oh, Kevin McKidd, Grey's Anatomy Eric McCandless/ABC

@ELENA_AGA: Something about Grey’s Anatomy! Is there any Merder or Calzona?
I can tell you that both couples are going strong! Unlike, sadly, Cristina and Owen in the coming weeks (sorry). Callie and Arizona are particularly adorable and rock-solid in coming episodes.

@kchadha19: Can you please give us some spoilers on the upcoming Greys Anatomy / Private Practice crossover episode? Thanks!
The life of someone we know will be hanging in the balance, and it’s all gonna come down to the two Shepards (Derek and his sis!) to save her. Oh, and the final outcome will be determined in less than one second. No big whoop.

EnterpriseJim: Got Grimm? Once Upon a Time?
You’ll get both and you will like it. We just chatted up Amy Acker, who reunited with her Angel EP for her role as Grimm‘s monster of the week this Friday. “I love him to death so I was so excited to get the phone call,” the sweet-as-Fred actress told us today about David Greenwalt. “When I read the script and saw I got to play such a fun, crazy, different character, it was just an added bonus.” Acker’s also coming up on Once Upon a Time, in which she’s playing “the complete opposite” of her Grimm character: Grumpy’s girlfriend! “I’m hitting all the fairy tales,” she joked. Wow. Grumpy is seriously batting out of his league. Way to go, little man.

MORE: Parks and Recreation boss on Tom and Ann shocker: “It’s real”

Jackie: Modern Family never gets any Spoiler Chat love! Got anything good to make up for it?
Sources tell us that right now they are casting Cam’s (Eric Stonestreet) mucho masculine dad!  Names being tossed around? Burt Reynolds, Tom Selleck, to name a few. We. Can’t. Wait. Who’s your dream Camdaddy?

@soccertrs007: Anything on Ted on How I Met Your Mother?
We know that next week’s episode “The Drunk Tank” will feature the debut of the infamous Quinn but it will also be the start of some serious soul-searching for Ted (Josh Radnor). Creator Craig Thomas reveals, “The end of that episode is where Ted thinks he has realized something huge about what he has been doing wrong and what he should be doing in terms of his future romantic life. The ending of that episode is like a bit of a cliffhanger with Ted…we have this huge Ted romantic turn of events.” The mind reels, no?

@ParisLoverGirl: Heya from Paris !!! :D Can give us some Vampires Diaries spoilers ?
Oui can do that. (And will refrain from further bad puns.) We are hearing there may be a kiss at the ball. Guesses on who?! After what Candice Accola and Joseph Morgan told us about Klaus and Caroline’s slow burn, we aren’t holding out any hope it’s them. Also, there’s a moment that will make you Damon and Elena fans audibly squeal.

MORE: Love is in the air on Glee, Grey’s Anatomy and more

REVENGE, JOSH BOWMAN, EMILY VANCAMP ABC/RANDY HOLMES

Laura in Knoxville, Tenn.: Revenge! Please tell me that Daniel’s not the one dead on the beach!
OK, people, so we’ve heard some things that have us sick with worry that the big death will be Josh Bowman (sob!), aka Daniel. We ran into Josh over Super Bowl weekend and begged him to put our fears to bed, but…he could not. “I think viewers will be very pleased with how its shot,” he tells us. “It’s going to be good. We’re all one big happy family, so it’ll be sad [to lose someone].” So if it is him, would he want to come back as a ghost? “Oh, f–k yeah!” Better yet? Don’t die!

Kristin: When will the next Spoiler Chat post?
Wow, Kristin, exxcellent question! We plan to post a Spoiler Chat every morning this week, so be sure to check back. These daily installments will be shorter than our previous Monday manifestos, but more timely and more responsive. So be sure to send in your questions via Twitter to @kristindsantos or via email to tvdiva@eonline.com right now, then check back tomorrow!

PHOTOS: TV Valentines!

Chat with 'Rango' director Gore Verbinski on Feb. 10

'Rango'

“Rango” is an oddly philosophical tale of a little lizard, voiced by Johnny Depp, who finds himself wearing the sheriff’s badge in a harsh outpost known as Dirt. The Gore Verbinski film is a mash-up of the classic western and a postmodern sensibility –- it’s far less cuddly or cookie-cutter than most animated features, which Verbinski says is by design.

So far, “Rango” has found success, whether at the box office or in awards season. The movie is nominated for an Oscar in the animated feature category, and it just picked up the top prize Saturday at the Annie Awards, presented by the International Animated Film Society, ASIFA-Hollywood.

Verbinski admits, though, that taking chances is never easy. “In a world of data of what works and what doesn’t work, when a producer’s intuitive responses are trusted less than research, I think it’s forgotten that an audience wants something new,” he said.

To that point: Verbinski and Depp are re-teaming for a revival of “The Lone Ranger,” which would be something of a dusty counterpart to their three “Pirates of the Caribbean” films. Expect a wholly different take on the classic western radio and TV series.

So how did Verbinski come up with those loopy characters? And did the voice cast really wear costumes and meet on a set rather than a recording booth?

The director will join us at 11 a.m. Friday (Feb. 10) for a live chat about “Rango,” the Oscar race and more. Sign up below:

RELATED:

‘Rango’ wins Annie Award for animated feature

Academy Award ballots are out; get your votes in

‘Rango,’ ‘Kung Fu Panda 2′ among those vying for Oscar

–Geoff Boucher

Photo: “Rango.” Credit: Industrial Light Magic/Paramount Pictures

Baking cookies today…..

I made Chocolate chip cookies and non Chocolate chip cookies.  They are some good, only been trying to make these since Christmas time.

I took pics of course.

 

 

 

 

 

 

 

 

Baking cookies today…..

I made Chocolate chip cookies and non Chocolate chip cookies.  They are some good, only been trying to make these since Christmas time.

I took pics of course.

 

 

 

 

 

 

 

 

Facebook Needs Zynga But Hard To Justify Stock Price Above $10.20

Zynga is the leader in social gaming and is charging forward in the mobile gaming space by acquiring mobile gaming studios and launching new mobile games on iOS and Android.

We know that almost all of Zynga’s revenues are generated by Facebook, but recently, after Facebook filed its S-1 filing for IPO, it was revealed that Facebook depends on Zynga, too, and in a big way. According to its S-1 filing, Zynga accounted for more than 12% of Facebook’s overall revenue in 2011. Facebook even explicitly listed its dependence on Zynga as a risk factor.

Zynga competes primarily with Electronic Arts, Playdom–which was recently acquired by Disney–and other independent social gaming studios. New games account for over 40% of Zynga’s $10.20 Trefis price estimate. Our price estimate for Zynga accounts for dilution due to stock options and restricted stock, which results in a deflated value.

Check out our complete analysis of Zynga

Facebook’s rising tide lifts all social boats

A lot of companies whose businesses are tied to Facebook saw their stock prices rise following the IPO filing. Zynga, which was trading under $10, its IPO price, since it went public, saw its stock price rise to an all-time high, before settling almost 25% above its IPO price at $12.4.

Since there is a high degree of correlation between Zynga’s revenue and Facebook’s revenue, some analysis of Facebook’s Q4 2011 numbers suggest that Zynga will see significant revenue growth in Q4 2011, much higher than expectations. [1]

New games and foray in online gambling to drive Zynga’s growth

Zynga is currently planning to enter the online gambling market with its Casino social games like Poker and Bingo. We expect a significant revenue boost should Zynga succeed in entering the lucrative online gambling market in the coming years.

Get top investment ideas for profiting in volatile markets in the Free Special Report 5 Guru Best Buy Stocks. Click here to download it now.

Zynga’s other new games like Hidden Chronicles and Scramble with Friends are also expected to attract more and more casual gamers in the coming years, and generate increasing amounts of revenue.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:

  1. Did Facebook Just Spill the Beans on Zynga’s Fourth Quarter?, AllThingsD [↩]

Like our charts? Embed them in your own posts using the Trefis WordPress Plugin.

Ex-Zynga Engineer Tears Into Former Company on Reddit

Somebody claiming to be a former Zynga software engineer took to Reddit over the weekend to bash the social games company for allegedly tailoring games to maximize compulsive playing, cobbling together code haphazardly, treating all but the biggest spending players as “spammers,” and a supposed surfeit of “brogrammers” who play office politics to a startling degree.

A Reddit poster calling himself “mercenary-games” hosted an “IAmA” thread on the site, answering various questions about work life at San Francisco-based Zynga, how the company adjusts its games based on user behavior, and various other things. Claiming to have worked at Zynga for eight months before quitting in disgust about six months ago, mercenary-games posted photos of “in-company swag” and an exit document as evidence of his bona fides.

According to mercenary-games, Zynga is overrun by “brogrammers,” whom he describes as “mostly Silicon Valley/Harvard type douchebags who got into programming … YCombinator drop outs [with] years of experience in managed and web languages, but who have no idea how to setup a build system nor work in native code.”

He also wrote that Zynga caters almost exclusively to what it calls its “Zynga Black” subset of users, the “whales” who have been known to spend more than $10,000 in a game like MafiaWars or FarmVille. Mercenary-games claimed one such user spent $100,000 in MafiaWars 2 over the course of a year.

Here are some more of the allegations the poster made about Zynga:

What creepy stuff went on?

mercenary-games: Spying on players. Getting intimate gaming data, their habits, their networks, and how to effectively monetize given X. Another issue was skewing gameplay for the sake of profit, example: I actually resorted to BAD MATH, to make the case for making a feature more fun. At the end of one sprint, a QA dude was complaining about the drop rate of a specific item being absurdly insane, and therefore UnFun. I looked at the code, and tweaked some values, gave it back to QA guy, and fun was restored. Product Manager overrides this, goes for unfun, yet more profitable version.

What are some of the ‘good things’ that Zynga did?

mercenary-games: An awesome chowhall for food. 2 meals a day. Arcade machines all over the campus. Living in the carcass of the old SEGA building. Brogrammers committing bad XML and pretending to be programmers. (entertainment value) Designers and Artists committing bad XML. (moar entertainment value).

Just how data driven is Zynga? How much do the PMs rely on metrics to craft the games?

mercenary-games: EVERYTHING. I have a hook into every piece of new data and user involved feature. I have to report the data at all times. PMs rely on metrics more for office politics, not science, not game design. Zynga is a marketing company, not a games company.

Why did you pull Word Challenge offline?

mercenary-games: Most likely, if a game released doesn’t match some metric or escalating population, it gets pulled off. Or, they are getting sued. It’s always these two scenarios. They’ve released unstable code for public consumption, REGULARLY.

What was your job title?

mercenary-games: “Software Engineer”. That should have been revised to “ActionScript Content Cruncher” though.

What is your opinion on the tiny tower vs. dream heights?

mercenary-games: Tiny Tower + D Heights is all standard operating procedure here. If you can’t buy em, clone em. Even the core technology for FarmVille (MyMiniLife), was bought. The only “homegrown” codebases at Zynga is MafiaWars2 and maybe Poker, the rest of their tech was just bought from small studios. Look up Dextrose Engine. To me, that’s utterly creepy. They try to choke out the competition by gating all these engines and tech.

What languages did you code in at Zynga?

mercenary-games: PHP, ActionScript, Javascript.

Zynga has not commented on the Reddit thread. The company recently made its initial public offering and last week it was revealed by Facebook in its own IPO filing that Zynga delivered 12 percent of Facebook’s revenues in 2011.

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