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Zynga sees their unsecured line of credit slashed heavily, from $1 billion to $200 million

Zynga has their unsecured line of credit slashed down from $1 billion

| Business, Financial & Legal News | Posted: Jun 25, 2013 12:30 pm

Zynga used to have a $1 billion unsecured, revolving line of credit, but has had a limit slapped right on top of that to just $200 million. The amount of time to pay it back has been increased, though, from four to five years, but it continues to be unsecured.

 

TweakTown image news/3/1/31316_05_zynga_sees_their_unsecured_line_of_credit_slashed_heavily_from_1_billion_to_200_million.jpg

 

Since Zynga went public, they've been faced with nothing but issues, taking away chunks of their value. The once-invincible company is now in troubled times, while they continue to restore their user base and release a new smash hit title which will get them out of the black. The company recently cut 18% of their workforce, and then they took another blow - investors cut their market valuation by a double-digit percentage.

 

At the prime of Zynga, they acquired the at-the-time gigantic OMGPOP, the company known for Draw Something, for $200 million. Well, that division has been closed, and Zynga have been left crying in the corner looking at that cheque they wrote. Zynga do have $1.3 billion in cash and short term investments, so they're not down and out just yet, folks.

NEWS SOURCE
Thenextweb.com

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