don mattrick out after 21 months at the helm. zynga rocketed on the scene in 2007 with several games on the facebook platform but the company capitalize on that promise with a frothy ipo that values zynga at $7 billion. now it is valued at $2 billion. sales tumbling 21% in the last year. last year, they lost $226 million in just one month. shareholders are losing even more money. shares are down on the news of pincus' return. rich greenfield is with us. this raises interesting issues about whether a founder is better, or a professional manager? >> they are better depending on the time the company is in. it is not a bad thing to have change in a company in this much trouble. pincus is an inspired leader. whether he can tune his inspiration so to speak to suit the times that zynga is in is a tough question because not only does it need to revive the production of being hit games and continued immigration to mobile, but it has to slim down further and become a more efficient company. he is a visionary entrepreneur, not an operating

zynga shares down 15% today on the news that ceo don mattrick resigning. than two years since he took on that ceo role. founder mark pincuss is returning to the role of ceo. now under mattrick, a veteran of microsoft's xbox empire the maker of hit farmville managed to shift from social to mobile games which represent 60% of its bookings, more than doubling since mattrick joined. the company has failed to create a successful mobile game franchise on the level of farmville. mattrick drew criticism for hurting zynga's poker franchise by prioritizing graphics over speed and simplicity and a number of analysts have raised concerns about the company's bloated cost structure including mattrick's paycheck. take a look at skin da ga stock performance under mark pincuss versus don mattrick. stern says that the ceo change makes him more cautious that it clouds the potential for a near term turnaround at zynga. btig analyst rich greenfield said the departure is a good thing but calls the new he's been replaced by pincuss worrisome. >> thanks. i was surprised to say th

let's talk zynga the stock hit hard after ceo don mattrick stepped down as the ceo.ounced founder will return effective immediately. mat tick took over in july 2013. stock still down almost 14% currently. that's a two-week low. what does this mean, john? >> i think it means we have a clear failure to disrupt here. this is bad news. don mattrick came from microsoft, deep experience in gaming supposed to be the adult supervision and fix this. apparently that didn't work. pin cuss coming back, look, the market cap now for zynga is around $2.5 billion. compare that to king which is $5.5 billion. both have underperformed, both i believe below their ipo prices, and interesting i was looking at electronic arts the company they were supposed to disrupt it's been outperforming zynga for 2.5 years. that stock has soared. the business model was based on the idea that zynga and king would not have to pay as much in marketing and endorsements to get attention to their games because social media and mobile were supposed to create a different kind of engine. that hasn't born out ye

don mattrick made some changes but ultimately none of the work over the last couple of years resultedn eddie and he hit titles. stephanie: why is he leaving? michael: don had a hard time winning back investor trust. want to have lost that trust, it is hard to get it back without results to back it up. at this point, they are -- there are not a lot of tangible results. erik: it was investors that effectively drove him out as ceo two years ago. michael: i think it is hard to say if mark will be able to right the ship and transition in a favorable way. to investors, the definition of a favorable outcome will be a new slate of games that ranks highly in the charts and is able to offset the decline in older titles. and has no games right in the app store which is hard to believe given the development and marketing research they have. it will be hard to say of mark will make those changes to result in a new crop of his or not. stephanie: what is your opinion of him? michael: i think it is a challenging situation as far as coming into a company that is in the midst of transition. i think he

cory: it's worth noting that don mattrick really cleaned up. he made just a boatload of money. even though it was the incentive. >> it's important to note that when he was last ceo, he could sell stock at $12 and got an early exit out of the ipo lockup. cory: rich greenfield and david kirkpatrick, thank you for this great story. bloomberg west will be back with sir richard branson in just a minute. ♪ cory: still to come, he dropped out of school at age 15 and started handling $7 billion businesses. richard branson on his next big education and what it means. a check on some top headlines. the j.p. morgan chase ceo jamie dimon said last october possible till it he was an event that was not supposed to happen. fluctuation of treasury yields by almost .4% was unprecedented. bill ackman's maleate pharmaceuticals have agreed to end their long-standing legal battle over insider trading. just after an unsuccessful bill -- bid last year. they have since been purchased by activists. sir richard branson, one of the wealthiest entrepreneurs in the world is also a high school dropout. like

ceo don mattrick is leaving his role and the board. founder and chairman mark pincus will return to the position. last quarter zynga posted its first sales increased since 2012 but it's string of losses extended to six quarters. zynga's shares are down in after-hours trading. google plans to launch a youtube subscription service as soon as this year. the feature would allow paying subscribers to watch youtube videos without having to sit through ads. revenue will be shared between google and video creators. this is according to an enough from google obtained by bloomberg news. now to the lead -- apple has a lot riding on the watch. the company's first entirely new product since the ipad in 2010. while it doesn't hit stores until april 24, the first reviews are coming up. bloomberg's josh to falsely spent a week with the watch and can tell you if it is worth your money. josh: the apple watch is a huge release for the company. it is the first new product they have made since the ipad and a depth of steve jobs. the watch is gorgeous in a

he replaces don mattrick, a veteran of the console gaming business who is leaving the country -- companyzynga once let the market for games on social media. last year, sales dropped 21% and the company lost more than $200 million. that is a look at our top stories this thursday. coming up, agriculture reporter alan bjerga dissects the latest crop report. at 2:30 p.m., we look at the dollars impact on tourism. and then for ivy league college applicants, the agony of defeat. ♪ mark: in be sure to check out the latest edition of "bloomberg businessweek" with a cover story on the internal revenue service. it hits newsstands and your tablet today. doesn't really say that? i have to ask -- look at this. let's look at commodities. crop surpluses are continuing to grow according to a department of agriculture global report. our agriculture reporter alan bjerga joins me from washington. what is this doing for prices? alan: today you saw soybeans drop the most in four weeks on reports of continued overhang in global inventory. this month report did not come as a particular surprise to people but i

he will replace don mattrick who has led the company since 2013.has said the firm had a strong first quarter and he is confident in the outlook. orange is looking to invest in bitcoin startups. it would make the company one of the first to become interested in the technology behind the digital currency. like other carriers, orange is building up its mobile payment business. coming up on the program, the u.k. general election is like -- is unlikely to give one party a clear majority. we will explain all the possible coalition combinations with the help of some legos. ♪ anna: welcome back to "the pulse " live on bloomberg television and radio. with less than a month to go until the u.k. election, no one can say what will happen afterwards. a new poll suggests neither labor nor the conservatives will win a clear victory and might need a coalition partner. that is where the hard work begins. >> her majesty, the queen has asked me to form a new government. our country has a hung parliament, where no party has a majority. >> in 2010, david cameron formed

ceo don mattrick will leave the company and mark pincus will return to the role as ceo.or declined 21% from 2013. the committee reported a loss of $226 million. shares are down 30% over the last year. one of the most visible losers in this space. joe: they had a model early on which was taking advantage of facebook to have people spam all their friends. i remember i was at a party once and someone described to me as this magic money machine. that was probably a red flag that it was not going to last. indeed it hasn't. it is great that the the old ceo's going back but it is hard to find a model that will work. leslie: clearly they need some kind of change. the stock has been hit drastically over the last year but investors today are not seeming to excited about pincus being the silver bullet. matt: is he steve jobs? probably not. smartphone wars heat up. samsung is hoping to get market share against apple's iphone. samsung expects the pair of galaxy s6 smartphones to set sales records. they also expect a man to exceed supply. could reach 55 million this year. do you use a