Fri, Mar 02, 2012 | 19:47 GMT
Zynga stock jumps after gaming portal announcement, analysts unclear on the implications
Shares in Zynga stock are up 10% due to the firm’s announcement of a new gaming portal and publishing deals. However, despite the boost, industry analysts feel some “complications” may arise between the firm and Facebook over the move.
While some feel its a smart move, it’s unclear whether or not the company will keep a larger percentage its revenue despite an attaining funds from advertising opportunities.
According to analysts Ben Schachter and John Merrick over at Macquarie Securitie, success will depend on whether consumers will accept visiting a new website to play their Zynga game or prefer to stick with Facebook.
Colin Sebastian of Baird Equity Research noted that while the new portal will provide Zynga customers with a better user experience, the company is still “heavily dependent on Facebook,” and over 90% of its revenues stems from the social network.