By Braden Holstege:
Zynga (ZNGA) had been a tricky stock for the market to price. The general excitement over social networking has been counterbalanced by concern over the reliance on Facebook and sustainability of a virtual goods model. Recently the stock received a boost on news of plans to move into the legal gambling sector. These issues have already been extensively covered by analysts and popular media.
Zynga faces another major negative that has been largely overlooked by analysts – the abysmal state of employee relations. Prior to the IPO reports surfaced of efforts to force employees to hand back unvested stock. Other news articles have explored the harsh corporate culture – the New York Times reports that Zynga has had major acquisition offers rejected due to concerns over Zynga’s treatment of employees.
This situation has become worse, not better. On Glassdor.com, a website which allows for employees to anonymously review the company