Zynga: Back To Pincus, Back To The Lows

April 10, 2015 12:05 PM

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Back in July 2013, in a surprise move, Zynga (NASDAQ:ZNGA) founder Mark Pincus stepped down from his position as CEO, to be replaced by Electronic Arts' (NASDAQ:EA) veteran Don Mattrick. In response, ZNGA shares rose 11 percent. Yesterday, in another surprise move, Mattrick resigned after a 21-month tenure, with Pincus returning to his CEO chair. In response, ZNGA shares have fallen nearly 18 percent.

Over $400 million in market capitalization has been wiped out in the move. But, as Zynga bulls are often fond of pointing out, the company has over $1 billion in cash and securities on its balance sheet. Thus, Zynga's enterprise value - the value the market places on its operating business - has gon...

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