Since the start of the year Zynga’s stock has risen by 67%, the change in the company’s fortunes is the result of massive corporate restructuring and a long-term reinvention strategy which will see the company move into real-money gambling.
Zynga is launching two big sites in the UK, Zynga Plus Poker and Zynga Plus Casino. The company recently announced a deal with bwin and is now in a position to being running real-money gambling operations.
However, Zynga faces a long process of repositioning itself. The company needs to market itself to a completely new set of customers.
Until now the company has been aimed at casual gamers with its colourful Facebook games. Now it has to attract an entirely different set of customers, those who are willing to regularly bet money.
Zynga’s successful games, such as FarmVille and CityVille, have been losing players at a fast rate, the company has already had to shut down CityVille 2. As it focuses more no real money gambling gamers Zynga is likely to have to discontinue a number of its casual games and completely restyle itself to the public eye.