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David Wehner is out at Zynga and David Ko is up, as the social gaming company shook up its C-suite in an announcement after stock markets closed.
Mr. Wehner, who’s served as the company’s chief financial officer since coming over from investment bank Allen & Co. in 2010, may have lost Wall Street’s confidence after Zynga’s share price plummeted nearly 80 percent since the FarmVille maker’s IPO at $10 last December.
He’s not the first high-level employee to leave Zynga in recent months, nor have the departures been limited to the top executives: Zynga laid off about 150 employees last month, and it said it would shut down 13 games.
After two big blows in succession–downgraded earnings forecasts, followed by 5 percent layoffs and the end of its studios in Boston, Japan, and the UK–Zynga’s third quarter earnings report exceeded the Street’s “rock bottom expectations.” That might explain why after hours trading is currently up 13.6 percent.
Zynga had predicted a net loss of $90 to $105 million for the third quarter, but only reported a net loss of $52.7 million. The company attributed part of that loss on a $95.5 million impairment charge on its acquisition of OMGPOP, the New York City-based makers of Draw Something. Zynga also said that a 28 percent sequential decrease in monthly unique payers (MUPs) from the second quarter (4.1 million) to the third quarter (3 million) as “largely driven by Draw Something.”