Don Mattrick's Move to Zynga (ZNGA) 'Interesting' Decision

Yesterday Zynga (NASDAQ: ZNGA) announced it hired former Microsoft (Nasdaq: MSFT) executive Don Mattrick as its CEO. Considering his background, he is seen as a strong management addition, and news he agreed to take the job is viewed as a strong vote of confidence for the struggling gaming company.

"Mattrick has more than 30 years of experience in the entertainment business, 25 of those at Electronic Arts where he left as President of Worldwide Studios. We believe this is a strong addition to Zynga's leadership and represents an interesting vote of confidence in the business by Mattrick given his other alternatives," said Goldman Sachs analyst Heath P. Terry.

Terry said Mattrick is well respected among both game developers and investors and his experience should serve Zynga well. However, difficult challenges remain.

"The headwinds Zynga faces in growing its social business as Facebook (Nasdaq: FB) game players increasingly spend more of their time on mobile, a much more competitive platform, are substantial and pose a significant challenge. Therefore, we remain at a Neutral rating pending signs of stabilization in existing franchises and traction in new game development," concluded the analyst.

Goldman Sachs has a $3 price target on Zynga.

For an analyst ratings summary and ratings history on Zynga (NASDAQ: ZNGA) click here. For more ratings news on Zynga click here.

Shares of Zynga closed at $3.07 yesterday.

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