Zynga Loses $404 Million in 2011, Stock Falls 18 Percent

I laughed so hard coffee came down my nose when I read the latest financial report from Zynga today.

It seems, after all the hype about Zynga stock and how their company is worth “billions” (and if you believe that I have an elephant I can sell you), they actually LOST over $404 million in 2011.

Yep. Lost.

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Now can someone explain this to me? If Zynga is valued at over $7 billion, according to their crazy IPO initial offering, how can they possibly have lost $404 million.

What? Are they now worth six and a half billion and change?

Zynga of course explains this huge loss of revenue by saying they actually made $1.14 billion but they had expenses for “$510 million stock-based compensation for restricted stock units issued to employees” (read — “yep, we are fudging the numbers, really we are”).

Meanwhile, Zynga’s stock is now in freefall, falling 18 percent to $11.80 at the close today.

It seems even Zynga’s 58.5 million players a day and Farmville’s success on Facebook can’t save Zynga from losing money. Then again that’s what karma does to you.



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When you steal other people’s game ideas, it comes back and BITES YOU IN THE ASS.

Michelle Topham


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