Zynga (ZNGA) Ramps Higher; Could Facebook Buy Them Out?
Shares of Zynga Inc. (Nasdaq: ZNGA) are now booming higher following last night's disclosures of the reliance Facebook's (NYSE: FB) has on the social game maker.
Shares last traded at $11.68, up 10%.
It was disclosed that Facebook makes 12 percent of its revenue from Zynga. Facebook also said that if it was unable to successfully maintain this relationship, financial results could be harmed. More details on the relationship here.
Speculators see a growing chance of a Zynga buyout by Facebook. This though could provide support for the stock going forward.
Shares of ZNGA are now trading at new 52-week high levels and now well above the IPO price of $10.
ZNGA reports its first quarter (Q4) as a public company on Tuesday, February 14th after the market closes. They will likely get many questions about the Facebook relationship on the call.
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Shares last traded at $11.68, up 10%.
It was disclosed that Facebook makes 12 percent of its revenue from Zynga. Facebook also said that if it was unable to successfully maintain this relationship, financial results could be harmed. More details on the relationship here.
Speculators see a growing chance of a Zynga buyout by Facebook. This though could provide support for the stock going forward.
Shares of ZNGA are now trading at new 52-week high levels and now well above the IPO price of $10.
ZNGA reports its first quarter (Q4) as a public company on Tuesday, February 14th after the market closes. They will likely get many questions about the Facebook relationship on the call.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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