New York – Emily Chang, the host of Bloomberg West, reported via her twitter account that three top-ranking executives will be leaving troubled gaming company Zynga (NASDAQ: ZNGA). Chang’s tweet was later confirmed in a report by TechCrunch after talking to what they claimed was a ‘source familiar with the matter’ adding that one of the executives, Nathan Etter, had updated his LinkedIn Page to include his new role as a Vice President at Disney.
While the move is not particularly surprising, it is not immediately clear under what terms the trio left the company. During his conference call on Thursday, Zynga CEO, Don Mattrick, stated that the company is reviewing ‘deployment at all levels of the company’ – a process that appears to be well underway.
Senior managers had previously advocated a strategy that included casino-style real-money gaming as part of the company’s portfolio. A strategy that the company backed away from last week in the face of legal barriers and mounting costs; online real-money gaming continues to be illegal in many U.S. states and the battle to win over state regulators could have taken months, if not years.
While the company has not announced who will replace the departing executives, analysts agree that the company has sufficient cash to afford it one or two quarters to rebuild itself and at this point. However, the question is for how long as Mattrick attempts to turn around a company that lost touch with the key developments in the market, such as mobile.
Shares in Zynga were down almost 1 percent in after-hours trading on light volume.
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