![Zynga Metrics][2]You'd think gunning for a sweet $1 billion and the top spot among video games' largest publishers would be fun. Well, not for [FarmVille][3] maker [Zynga][4]: Not only is the media after the 4-year-old company, but so is everyone else. The next big timer to "be hype"--as the cool kids say-- is Strauss Zelnick, CEO of Grand Theft Auto publisher [Take-Two Interactive][5]. During the Reuters Media Summit in New York, Zelnick openly questioned Zynga's business model, casting doubt over whether it can make good on investor expectations as it quickly approaches an [initial public offering][6] (IPO).
"I would argue being the No. 1 player in (social gaming) is complicated, which is why Zynga hasn't gone public yet because their metrics are sketchy," [Zelnick said to Reuters during a talk][7]. "I think they have disclosure issues, I think you are seeing their acquisition costs go up, marketing costs go up and they have very high churn."
Zelnick was likely referring to the company's frequent amendments to its S-1 filing with the US Security and Exchanges Commission since it filed for IPO early this summer. His words also seem to allude to the [14 some companies Zynga purchased in a single year][8], which helped it amass nearly 3,000 employees worldwide. Finally, Zelnick could have been talking about how quickly the [CityVille][9] creator has [lost daily players recently][10]. (What a loaded statement, huh?) We can't wait to see who else gets "jelly"--that's cool now too, right?
[Via [IndustryGamers][11]]
**Do Zelnick's words against Zynga have merit? Will Zynga be able to pull off a successful IPO with these negative vibes floating around? Sound off in the comments. [Add Comment.][12]**
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[1]: http://blog.games.com/category/news/
[2]: http://www.blogcdn.com/blog.games.com/media/2011/11/10828zyngametrics.jpg
[3]: http://blog.games.com/category/farmville
[4]: http://blog.games.com/tag/zynga
[5]: http://blog.games.com/tag/take-two
[6]: http://blog.games.com/tag/zynga+ipo
[7]: http://www.reuters.com/article/2011/11/29/us-media-summit-taketwo-idUSTRE7AS1U720111129
[8]: http://blog.games.com/2011/11/18/zynga-buys-two-companies-4-9-million/
[9]: http://blog.games.com/category/cityville
[10]: http://blog.games.com/2011/11/29/zynga-is-the-new-four-letter-word/
[11]: http://www.industrygamers.com/news/zyngas-metrics-called-sketchy-by-take-two-ceo/
[12]: http://blog.games.com/2011/11/30/zynga-metrics-sketchy-take-two/#disqus_thread
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