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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.

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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.

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.

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