Pixel Envy

Written by Nick Heer.

Zynga’s Financial Troubles Worsen

Cyrus Farivar confirms in his story for Ars Technica what anyone would have predicted in March:

[Zynga] said late Thursday it will earn around $300 million this year in Q3 2012, down from $332 million last quarter. Most notably, the company took a write-down of $85 million to $95 million on the value of OMGPOP, makers of Draw Something—more than half of what the company paid for it earlier this year. That means Zynga drastically overpaid for the smaller gaming company.

In that deal, Zynga essentially valued the Draw Something game at $200 million.