SMALL CAP NETWORK - Mar 13 - Speculations that Zynga might be acquired by Yahoo! comes from comments made by the latter’s M&A head last week about working on two “significant” acquisitions and about six smaller talent “acqhires.” An acquisition makes sense for Yahoo! as its been performing better lately. In fact, Yahoo!’s stock is up around 53.1% over the past year thanks in part to the performance of the Alibaba Group in China plus new leadership is in place. Given Zynga’s deflated share price of under $4 and a market cap of under $3 billion – it would be a cheap acquisition that Yahoo! could almost pay cash for. But CEO Marissa Mayer said that Yahoo! wants to focus on offering products and services based around “daily habits” like checking stocks, searching the Internet and doing email. Internet gaming is probably not a daily habit for most Internet users right now.
by John Udovich
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