Zynga exodus continues, four more executives resign as stock plummets


At least four Zynga (NASDAQ:ZNGA) executives have resigned within the last several weeks as the beleaguered social gaming giant's share price continues to slide.

Citing sources with knowledge of the matter, Bloomberg reports the Zynga defections include Ya-Bing Chu, a vice president in the firm's mobile gaming division, as well as Alan Patmore, general manager of the popular CityVille franchise, who has joined rival Kixeye. Two other general managers--Erik Bethke and Jeremy Strauser--have also exited the Zynga ranks. Their departures follow the resignation of Zynga Chief Operating Officer John Schappert, who left the firm earlier this month just days after he was stripped of his responsibilities as head of social gaming development.

Zynga stock has nosedived 68 percent since the company went public in late 2011, dramatically decreasing the value of equity used to compensate staffers. Bloomberg reports Zynga CEO Mark Pincus has awarded option grants to all full-time employees to minimize turnover.

Zynga declined to confirm the staff shakeup. "Zynga continues to lead the industry with the top talent in social-game development," a spokesperson said in email. "We're proud of the teams working hard to create the next generation of social games."

Zynga reported second quarter 2012 losses of $22.8 million, which executives blamed on recent algorithmic changes made by social network Facebook, as well as diminishing mobile traffic for high-profile acquisition Draw Something. Despite its troubles, Zynga's second quarter revenues reached $332.5 million, up 4 percent over the first quarter of 2012. Zynga now boasts more than 300 million monthly active users, including 33 million daily active users on mobile.

For more:
- read this Bloomberg BusinessWeek article

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