Zynga stock surges on takeover talk from other gaming rivals

Zynga Inc (NASDAQ:ZNGA) shares popped following reports that the company has drawn takeover interest from gaming rivals, a report by CNBC said. 

Zynga has come up several times in takeover rumors as it struggled to to trade at its December 2011 IPO price of $10.

Zynga closed on Tuesday up 12.37% at $4.36 and edged up in Wednesday’s premarket to $4.39. The rally in the previous session is the biggest for the company since 2014. 

The company had no immediate reaction to the report.

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The founder of Zynga, Mark Pincus, said in a blog post on May 2: “The transition to mobile challenged our ability to continue delivering games our players would thank us for and left the company headed in the wrong direction.”

He said then Zynga is again in a strong position, he said he would transition “to non-executive chairman.”

“Mobile gaming, which didn’t exist in 2007, is now a $70b (and growing) business,” he said.

Zynga develops, markets, and operates social games as live services in the United States and internationally.

The company’s games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. 

The company is based in San Francisco, California.

Story by ProactiveInvestors