Zynga's (ZNGA) New Game: 'Explain Something'

It may take Zynga (Nasdaq: ZNGA) 2.5 years to recoup expenses tied to its OMGPOP deal.

Zynga said on Monday it would be letting go of 520 employees, or 18 percent of its total workforce. With the announcement, the company said pre-tax annualized cash expense savings will be about $70 million to $80 million.

TechCrunch noted today, via several Twitter posts, that OMGPOP has been closed down. Zynga acquired OMGPOP in March 2012 for $200 million, right when OMGPOP was at the height of popularity with its 'Draw Something' social app.

So, should Zynga be able to recover from this setback, some investors hope that it will be more prudent in its deal making, maybe not buying a company at the height of its popularity.

Right, Zynga?

Shares of Zynga just about flat Tuesday.

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