October 24, 2012 |
Already prepared for the worst, Zynga Inc. shareholders got a welcome surprise Wednesday as the social gaming company reported better-than-expected revenue for the third quarter, plus a $200-million stock buyback and a partnership for online gambling in Britain. Zynga shares shot up 13% in after-hours trading as a result, helping to partly reverse losses of 75% so far this year. The San Francisco company warned investors two weeks ago that its financial performance for the year would be lower than expected and that it was taking a significant write-down on its $180-million purchase in March of Omgpop, the maker of the mobile game "Draw Something.
October 4, 2012 |
ynga's shares plummeted 19% in after-hours trading after the troubled social gaming company cut its financial projections for the year and announced it would write down nearly $100 million from its recent acquisition of OMGPOP, the maker of "Draw Something. " In March, San Francisco-based Zynga paid $180 million for OMGPOP based primarily on the value of "Draw Something," which was at the time hugely popular on mobile devices and the top-selling game on Apple's iTunes Store. However, it soon became clear that Zynga bought OMGPOP at the peak of the game's popularity, because its usage rapidly declined in the following months.
August 3, 2012 |
With only three new movies in theaters during the second quarter -- one a 3-D re-release and another released on behalf of a separate company -- Paramount Pictures revenue plunged 29% to $1 billion. Thanks to sharply lower expenses, however, the studio's operating income dropped only 6% to $29 million, according to financial results released by parent company Viacom Inc. on Friday. Among Paramount's releases in the three-month period ended June 30, "Titanic 3-D" was a huge hit, grossing $343.6 million worldwide, which was split between the L.A. studio and partner 20th Century Fox. "Madagascar 3: Europe's Most Wanted" has taken in a strong $501 million so far, though Paramount keeps just 8% of revenue from the DreamWorks Animation release.
July 25, 2012 |
It's looking like another bad summer for Netflix. One year after a sudden price hike and a bungled plan to establish a new DVD brand, the subscription video company's stock is again plummeting. It fell 25% on Wednesday, closing at $60.28. This time the culprit is investors' concern that domestic growth is slowing while management is moving too fast to expand overseas. Following disappointing news in Tuesday's financial results, at least seven Wall Street analysts lowered their price target for the stock.
March 31, 2012 |
CHICAGO — Groupon Inc. revised its financial results for the fourth quarter and fiscal year, reporting a $14.3-million decrease in fourth-quarter revenue. The Chicago-based daily deals company said it had not set aside enough money for customer refunds. When this refund allowance was adjusted, Groupon posted a decrease in revenue. In a statement, the company acknowledged "a material weakness in its internal controls. " Groupon elaborated on these shortcomings in a filing with the U.S. Securities and Exchange Commission, saying that its financial procedures were insufficient for supporting "accurate and timely" reporting of its results.
March 23, 2012 |
Metro-Goldwyn-Mayer has taken back full control of its legendary film label United Artists, is booking a loss on its recent release "The Girl With the Dragon Tattoo" and has added a top TV executive to its board of directors, the independent studio revealed in financial filings this week. Formed in 1919 by film luminaries including Charlie Chaplin and Mary Pickford, UA became part of MGM in 1981. In 2006, UA became a joint venture between MGM and Tom Cruise and his producing partner Paula Wagner, who together got 30% of the company.