Thursday, August 9, 2012

Zynga COO Leaves Company

Two weeks after Zynga reported lousy quarterly financial results, sending its stock price into a tailspin, the company has revealed in a regulatory filing that COO John Schappert is resigning as an executive and board member.

News of Schappert's resignation comes a week after insiders said he was being partially blamed for an atrocious quarter and had been stripped of some of his duties.

Schappert was one of the more seasoned video-game executives at Zynga, having been lured to the maker of Facebook and other social games via a hefty pay package reportedly worth north of $40 million. Previously, he was with Electronic Arts.

Late last month, Zynga, the maker of "Words With Friends" and "Draw Something," reported a second-quarter profit -- after certain items -- of a penny, missing Wall Street's expectations of 6 cents and causing the stock to plunge after the closing bell.

On Wednesday, Zynga shares were trading at $2.95 apiece, down 71 percent from their December IPO price of $10 and off 42 percent since its second-quarter financial report.

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