Don Mattrick to don the Zynga Inc (NASDAQ:ZNGA) CEO hat
Zynga Inc (NASDAQ:ZNGA) announced that Don Mattrick, Chief of Xbox at Microsoft will be taking over as the Zynga CEO. The company founder, Mark Pincus, the former CEO will be retaining the Chairman and Chief Product Officer titles. Pincus and Mattrick will together be reporting straight to the company board. ZNGA shares rose 6.51% and closed at $3.27 per share at Tuesday’s closing. The company shares had dropped nearly 2/3rd of their value since ZNGA went public and the change in the higher echelons of the company is definitely a breath of fresh air.
Change for the better?
The change is no doubt a welcome one but only time will tell exactly how a partnership such as this new hire will work with Pincus as 61% of the company’s voting rights are held by him. Apart from the organizational chart that is now a little fuzzy, the next question is whether the XBox chief is the really the best-suited candidate for the job especially since the company is strolling to stay afloat. Mattrick had faced some criticism by some people who felt that the Xbox One rollout was a bungled one.
The market is watching
Hardcore gamers felt that they had been sidelined and that the new launch lacked focus on gaming. Another issue was that the unit had to be on-line all the time.
Microsoft did a quick shuffle and fixed some of the more glaring issues. However, the privacy issues connected with Kinect haven’t yet moved into reverse gear. It is a fact that Zynga as well as Xbox make games but very frankly they don’t have much more in common. Probably, the only good thing about Mattrick coming onto the scene is that any kind of change at the company can only make it head upwards after all the bad weather that it has faced.
Today, Zynga has a billion in cash but no evident operating prospects. So, Mattrick better have some good strategies up his gaming sleeve because what ZNGA needs right now is really nothing short of a miracle and the eyes of investors and market watchers are now trained on Zynga’s new CEO