Photo: Flickr / Fortune Live Media
Zynga is granting additional stock awards to its staff after its disastrous second-quarter miss, Bloomberg reports.That comes after Zynga’s stock has cratered since its IPO, down from an initial pricing of $10 to about $3 today.
Most of Zynga’s employees’ options are underwater since the stock has fallen so far, so Zynga basically had no choice but to offer additional stock to its employees.
Otherwise, Zynga’s weak-performing stock might prompt employees to flee to competitors and greener pastures.
Zynga’s second-quarter results were weaker thanks to a decline in the popularity of Facebook games. Nearly half of Zynga’s players are now on mobile games, which monetise lower than Facebook games, which forced Zynga to lower its yearly guidance.
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