Contrasting Fortunes for Facebook and Zynga
Sep 27, 2013
Zynga shares drop
Zynga Withdrws Applicaion for Nevada Online Gambling License
Zynga’s stock has taken another hit, dropping 4.6% as the social gaming company has announced it’s dropping of its mobile casino pursuit. The company had previously applied to Nevada for a license to offer gambling services in the state, but has since withdrawn that application.
The company is now due to refocus back on its social gaming core business, after the appointing of new CEO Don Mattrick. Expect to see a number of free play and freemium mobile arcade games in the near future from Zynga.
Meanwhile, Facebook’s stock managed to rise above $50 for the first time. That’s a pretty incredible movement considering the depths the stock plunged to following its original listing back in May 2012. Perhaps it is the social networks commitment to providing real money mobile casino games in the future that has been behind the share price rise, as Facebook searches for ways to monetize its massive following.
These pieces of news all come on a background of record profits for the mobile gambling sector. With the rise in social casino games and Facebook apps, more people than ever before are spending time on slot games. It’s finding a way to really monetize these social gamers that is key to the industry’s future success.