Zynga quits as stock slide continues

Zynga’s chief operating officer (COO) John Schappert has resigned, the company said in a regulatory filing, a move that was foreshadowed by a recent management shakeup at the game publisher. Zynga reported a net loss for its second quarter in late July and cut its full-year earnings per share forecast, news that sent shares down roughly 40 per cent and attracted shareholder lawsuits accusing the company of misguiding investors. The company blamed its poor quarter on sudden changes to Facebook’s algorithm, and delays in its pipeline of new titles. The resignation from Schappert, a former Electronic Arts executive, did not arise from “any disagreement with the company on any matter relating to the company’s operations, policies or practices,” the filing said. But it came as no surprise to Zynga’s followers after the social gaming company behind Facebook-based hits like “FarmVille” said earlier this month that Schappert had ceded many of his game development responsibilities while Zynga shuffled its top management ranks after reporting a net loss for its second quarter. Zynga elevated David Ko, its chief mobile officer, and Executive Vice President of Games Steve Chiang, to top positions overseeing game development alongside Chief Executive Officer Mark Pincus. The company did not immediately name a replacement for Schappert. “John has made significant contributions to the games industry throughout his career and we appreciate all that he has done for Zynga,” Pincus said on Wednesday in a statement. “John leaves as a friend of the company and we wish him all the best.” Zynga is one of several Internet startups that debuted with fanfare in late 2011. From:Gulftoday