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Comment by untog | Hacker News Reader

Boy does this suck for Zynga employees. I really feel for the former OMGPOP employees as well- looks like Zynga has taken them down with them. I know that OMGPOP were desperately short of cash themselves, but at least they were the masters of their own destinies.

EDIT: and I wouldn't be too smug about their downfall if I were you. There could be repercussions across the tech sector if Zynga totally fails.

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Why? I felt bad for Zynga employees who got screwed earlier since that was the first breach of trust by their CEO and it was still unclear if Zynga was something other than a game-copying exploiter of economically disadvantaged people through game mechanic trickery. But now, after all the dirty laundry has been aired?

edit: Any repercussions for the tech sector if Zynga fails will fall in the "healthy correction" column in my book.

I would assume that he is referring to the possibility of a confidence crash in tech companies that would affect public markets. Personally, I don't think Zynga is widely held enough for it to have much of an impact, and as you mentioned, the dirty laundry has already been aired.

Yeah, I think Zynga failing would have to be coupled with at least a few other non-social-gaming related companies for there to be any market-wide implications due to capital shifting.

edit: honestly if you are worried about market-wide implications wrt ZNGA the stock, if they ousted Pincus and started fixing the company then the short squeeze and the subsequent margin calls would probably be more of concern than the stock cratering, which is what most people expect.

I agree. If somehow Facebook plummeted and bankrupted it would absolutely raise doubts about the tech sector. 1/7 of the world can't use a service it trusts any more is a big deal.

The OMGPOP purchase was for a ridiculous amount; I think they were fairly compensated.

good repercussions, so bring them on.

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