Zynga Now Worth Less Than Its Own Office Building

Anecdotally I know, but I thought a large percentage of people knew Zynga was way overvalued. That said, how does a company of 3000 people not recognize this and drive forward new revenue? They had the cash, they could and did hire talent. What stopped new revenue sources from being created? I'd love to read a breakdown of what's happened there.

It's likely as simple as a failed company of people from the beginning that got lucky with one or two games because of external forces and thought they could make run of it forever. It's not a new story in the games industry, it happens all the time. The only reason this seems different is because of the extreme overvaluation at the beginning of the hype train that's been failing for the last few years.

Take a look at ION Storm as a somewhat related story.

Note: this is a satire account.

However, Zynga appears to have approximately 0.9 billion in cash reserves and their property is probably worth somewhere in the 400 millions with a market cap of about 2 billion, meaning it's surely not worth more than x1.5 of its own building.

I had basically forgotten about this company. They received a lot of press on how overvalued they were and there were plenty of doubts that they could sustain their success even at their peak.