Microsoft Corporation (MSFT) Loses One to Zynga Inc (ZNGA)

Microsoft Corporation (NASDAQ:MSFT) has received its fair share of negative publicity within the gaming industry recently, following its controversial plans for the Xbox One that it was forced to promptly backtrack on. Microsoft Corporation (NASDAQ:MSFT) entertainment and gaming chief Don Mattrick has been the public face of that backlash, defending the company’s stance while also announcing the quick about-face.

AllThingsD is now reporting that Mattrick is preparing to leave Microsoft Corporation (NASDAQ:MSFT), but it’s not clear if the Xbox controversy played a role in that decision. Today also happens to mark the day that Microsoft was expected to revamp its organizational structure, a separate storyline also initially covered by AllThingsD. However, Mattrick’s departure is supposedly unrelated to the restructuring.

Mark Pincus

Mattrick’s possible destination is none other than beleaguered social gamer Zynga Inc (NASDAQ:ZNGA). Mattrick and Zynga Inc (NASDAQ:ZNGA)have allegedly been in talks for quite a while, and Zynga Inc (NASDAQ:ZNGA) is in desperate need of someone to lead a turnaround. Mattrick could potentially be taking the CEO spot from Mark Pincus. Rival game maker Electronic Arts Inc. (NASDAQ:EA) has also been looking for a new CEO following John Riccitiello’s resignation in March, and Mattrick was also a top candidate for that C-suite spot.

Microsoft Corporation (NASDAQ:MSFT) doesn’t immediately have a replacement lined up, which may be disconcerting for investors, given that the Xbox One launches in just a matter of months. This holiday season will be crunch time for game console manufacturers, as new generations only come around every seven to 10 years, and Sony Corporation (ADR) (NYSE:SNE) emerged from E3 as a clear favorite before Microsoft Corporation (NASDAQ:MSFT)’s change of heart. Traditional gaming consoles are under pressure, too, as disruptive devices like the Ouya start to take off.

Zynga Inc (NASDAQ:ZNGA) investors are certainly excited about the prospect, as shares promptly soared by as much as 13% on the reports that Pincus’ reign may be at an end. Even if Mattrick does become Zynga’s new CEO, Pincus will still retain much of his power, though. Pincus would likely remain as chairman. He does happen to still control 61% of all voting power, thanks in large part to his supervoting Class C shares that get 70 votes per share and that only he holds.

Could Mattrick lead Zynga Inc (NASDAQ:ZNGA) back to glory?

The article Microsoft Loses One to Zynga originally appeared on Fool.com and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!