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  • January 13, 2012

    Zynga stock and Current business

    An executive from rival Electronic Arts Inc. lures away online game maker Zynga Inc. The hiring of Barry Cottle, announced on Thursday, underscores the escalating rivalry between rapidly growing Zynga and Electronic Arts, a video game stalwart.

    Electronic Arts' push into mobile and online gaming for the past four years had been overseed by Cottle, 50 . The diversification beyond packaged video games has paid off. In a memo sent to Electronic Arts' employees on Thursday, CEO John Riccitiello said the company's digital revenue surpassed $1 billion (Dh3.67 billion) for the first time last year.

    FarmVille and Mafia Wars, that have primarily been played on Facebook's social network has emerged by Zynga as a major competitor with series of hit games. In an effort to become less dependent on Facebook, Zynga is trying to expand its reach. It's counting on Cottle to help it realise those ambitions as its executive vice-president of business and corporate development.

    In an initial public offering of stock completed last month, Zynga is currently flush, having just raised $1 billion. It's the most money raised by a US internet company since Google Inc went public in 2004.

    Like they did Google, whose stock price has never dipped below its IPO price of $85 per share, Investors so far aren't embracing Zynga. Zynga's shares, in contrast, still haven't closed above their IPO price of $10. Thursday at $8.45, the stock finished up 12 cents.

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