zynga was never able to duplicate the success of farmville. may be thinking they could be facing the problem. after all the business of social mobile games is a miss and there is a lot of competition. they got 78% of sales from one game, from candy crush last year. so wouldn't it be crazy to think this isn't a one-trick pony? by the way, just so you understand how these companies make their money, the games are free. they sell you varied ad-ons. people pay up. let me tell you why this story differs from zynga. where let's go back in time. where zynga was where it became public vs. where this one is now. first of all, you know this is going to sound silly but king's candy crush is in a different league from zynga's farmville. >> tasty. >> candy crush is one of t highest platform apps of all time. king had 12.2 million unique payers every month. that's unbelievable in the quarter before zynga became public they had 4.4 million. last year it increased tenfold that kind of explosive growth is admittedly not sustainable but it's impressive that the

have you ever played farmville?n't play any of those video games. >> either do i, but the company behind farmville was synga. it had an ipo and went public in december 2011 and their share price halved. i think it's come back recently, but the point is, you need to be more than just a hit-driven ipo, so time will tell with this. >> i did play pac-man. that was a while ago. >> '80s. >> a lot of people play candy crush on facebook. mark zuckerberg, headlines with another multibillion purchase. >> this is facebook's first foray to hardware. $19 billion for what's app. everyone is saying, wow, are they just spending to spend? what's its strategy here with regards to acquisitions? they make these goggles. >> very attractive, by the way. >> very attractive. and so far you can't just go into a store and buy it. there are lots of orders out there, mainly from, you know, the gaming industry, right, for playing video games, but zuckerberg has a vision for this to go so much further. he sees applications in education, in medic

>> people defected from farmville to candy crush. >> i got farmville was even more ridiculous than candy have not come up with a better game than angry birds. >> no, and they have stayed private for that reason. that game is owned by rodeo. king has gone out and corrected some of the mistakes that zynga has made in terms of showing a for gamingtfolio companies. >> look at the two-year zynga chart. painful. didn't want to bet on farmville, did you? star of the show attraction, one of them has doubled -- he had some interesting metrics showing user growth. one of the games had more than doubled from 9 million to 20 million. maybe we'll start to see more diversification there. but again, an incredible concentration at this point. >> i sincerely hope somebody comes up with something better than these games for mobile. mobile is the future, right? you try to give them -- you try to give your kids a big screen tv when you are moving into the house and they don't want it. >> i was stunned. they're on their tablets and mobile devices. >> and playing games a lot, i assume. >> yes, but they can do

. >> farmville was once the hot game, their shares have fallen dramatically.gled to maintain the buzz. investors felt like kids in a candy shop. in the fierce world of social gaming, investors may want to settle for a less intense sugar rush. >> you know who likes candy crush. >> candy. >> yes, always playing it. that is all the time we have for now. >> for our viewers "early start" is coming up up. for everyone else, "world business today." ♪ >>> breaking news this morning. the search narrows and intensifies for the missing malaysian jetliner that vanished from the sky nearly three weeks ago, investigators scouring the southern part of the indian ocean by air and by sea. new technology on board to help find that wreckage and reveal what went so terribly wrong. we have live team coverage on everything you've missed overnight. good morning, welcome to "early start." i'm christine romans. >> i'm poppy harlow. it's 4:00 a.m. on the east coast. 12 planes and

so to avoid buying the farmville, a call for 42 cents to make money, shares arrive above 4.50 or above.92 by april. it takes 42 cents to get in on zynga. >> this game -- >> no, it ain't. so to spend less, he pulled not one but two equal calls for 24 cents. between the lower strike call and the 24 cents he collected on those two higher strike calls, mikes a reduced his costs down to 18 cents and fwlou to make money, mike only sooedz needs to see zynga shares rise more than the cost of the trade for above $4.68. >> i created the perfect system. >> not right. if windows shares rise above $6.32, mike could be on the hoof for infinite losses. >> we are at def con 1. >> to prevent that mike bought a call, now between the 42 cents he's paying for the lower strike calm the 24 cents he is collecting by selling the two middle strike calls and the 7 cents he is paying for the higher strike call, he is shelling out a total of 45 cents. that's the most he can lose, in order to make money, he needs stocks to rise above 4.75 by april expiration. since the time of the trade, zynga shares rallied over

so, to avoid buying the farmville, bought it 42 cents. he need it to raise above $4.50.ts just to get in on zynga -- >> is this a game in. >> no, it's not. he sold two april strike calls for a total of 24 cents. mike has reduced his cost down to 18 cents. and now to make money, mike needs to see the shares raise above that lower-priced cost, to 4.68 by expiration. you see because mike sold more calls than he bought, if zynga shares rise above 6 bhnt 32. so to protect himself against one, mike went ahead and bought the april strike call. now between the 42 cents he's playing for the lower call and the 24 cents he's collected and the 7 cents he's paying for the higher call, he shelling out 25 cents. in order to make money, he needs zynga stock to raise above 4.75 by expiration. zynga shares have rallied over 25%, making this trade a winner. what one more question -- what will these two gamers do now? >> let's see how much money is made. mike's trade cost 25 cents and can be sold for double that for a return of 100%, wow, mike, are you sticking with it? >> when we talk abou

they do not want to be equated with farmville. but they are not being visible about what those things are in the pipeline. >> all right, king, we will continue to follow, and, cliff, thanks so much. and recently, we learned that dish's ergen contacted the directv ceo about a possible merger. joining us is our bloomberg media reporter, so exactly where does this stand? it sounds like the directv ceo is not really interested. >> if this tie up happens by any means, the u.s. is going to scrutinize this. they compete directly against each other, and this is unlike the other big merger news in tv land, which is comcast-time warner cable. there is less of a consumer concern, at least on the face of it with that merger, whereas with directv, if you're in the market to buy television, and you are thinking about another service, you no longer have a choice if those two guys team up, and that is why the directv folks are more cautious about it. >> how much does this have to do with comcast trying to buy time warner cable? >> i think that is

if you look at the likes of zynga and farmville, they're cheaper to make and buy an highly, highly addictiveyou see the likes of nintendo by some investors being pushed for this particular sector of the industry. maker of candyhe crush. given a valuation of $7.5 billion. i've seen great tweets on that. more valuable than more since -- morrisons. future.et this is the thank you, jonathan ferro, with the latest on the bafta giving awards. for more new words, the chair of the games committee. reagan have you on the program, harvey. give us the scope. $93 billion for the gaming industry. this seems incredible. how much will it increase because of mobile? we are always on our devices. this means you could potentially all day everywhere. >> that is the key. mobile phones are amazing these days and performance has grown so much. we're finding people are playing 24/7 -- >> that is scary. >>, it happens. there are games that capture people in such a way you have no choice but to put more time into it. >> what makes a successful game? can you spot one before it comes out? i love seeing films. can i sp

that is the maker of ""farmville." six times relative to four times sales at king.com. >> even if it prices at the high-end of the range, you are saying this could still be a discount. >> exactly. what we have been told by investors and bankers alike is that they are trying to discount these shares because investors are concerned that it could be a one-hit wonder. candy crush which is 78% of its sales right now could be its only thing going. >> it is mind-boggling. 78% of sales came from this one single-game. that you could value a company at nearly ¥80 dollars because of billioness of a -- $8 because of the success of a mobile game. what other risks here? >> people can defect from the social networking games. look at what happened with zynga. shares have fallen since its ipo as users defected from its games to candy crush. who is to say the same thing can't happen from candy crush to the next big thing? it has been a saga with the ipo. there are rumors that they were going to do it and then they pulled back. do you th

people are comparing it to the likes of farmville. does it have any longevity? is it just a fad? what comes next? you can produce a top selling game like angry birds for less than $150,000. that means competition is going to come into the market and potentially knock you off your perch. >> give us the sense of size and scope. how does it compare with some of the british companies? 2.7 terms of evaluation times sales projection this year. not that big of an evaluation. when you look at the size of this company, everybody would have been talking about this being a bubble. this is a company that doesn't have anything that you can touch or feel. it is literally just a gale. look at some of the companies in europe. key digital. look at peugeot. look at air france. these guys have real assets. peugeot produces cars. you have a company that produces games. remarkable. >> i'm afraid of candy crush the movie. >> everyone plays candy crush. i haven't played it yet. >> the female participation rate in that game is very high, funly enough. >> i haven't played it. >> where have you been? >> w

its farmville game was all the rage when it went public back in 2011 and now zynga's stock is half what it was then but the beat goes on. facebook buys online messaging service what's that for $19 billion. a 23-year-old kid passes up selling his company snapchat for $3 billion because he thinks he can get 10. i'm told it's a new day. i'm told it's a new paradigm, that it's not about profits. it's all about promise. you know, maybe i'm just an idiot. don't any of you chime in, but i swear i've heard that one before. it was early 2000 in the middle of a boom, and there was this rage with all the dotcoms until in an instant they were dotgones. now i'm not saying that this game is all that, but, man oh, man, 8 million bucks, that's not candy, that's cocaine. we're on it, and tonight we're picking it apart. the contrarian view on the mainstream view, and that health care law, too. good night. >> hello, everyone. i'm andrea tan tarz along with bob beckel, eric bowling, greg gutfeld and dano perino. it's 5:00 in new york city and this is "the five." >>> six days now since flight 370 out of mal

in a move to get back in the game zynga launching new mobile versions of things like farmville 2, countrynga poker and new words with friends. the new games will be available in the next couple months. >> twitter employees will soon be eating at historic log cabins. the firm keeping with the desteiner's interior will install cabins from the late 180s. the buildings which bear the ranchers mark will serve as dining rooms at twitter's new place. and merchandise mart on market street. pretty cool. >> interesting. >> let's check in with christina. 5:55. >> you know, these days scott and peggy, people wonder do i need to grab that umbrella before i leave. the answer today is yes indeed, you do, all no, we're not expecting heavy showers. we'll see spotty activity. you don't want to get automatic offguard. you'll probably use your wipers from time to time. overall mostly dry. as we head throughout the next couple days, the heavier steadier rainfall returns to the forecast. we're going to dive into that. mid-60s headed your way for most ever the bay area. here is mike and the morning drive. >> lo

zynga had one product that was the flagship product with farmville. what we learned from the zynga ipo, that people are fickle and will not play the same game forever. "candy crush" is 80% of all of king's revenues. out of 180 titles, other 179 only make up 20% of their revenues. melissa: james, thank you very much. we want to get reaction from the panel. i think your analysis is spot on. when i see stuffed animals romping around on new york stock exchange and game-maker comes out and, these guys. when i see these guys out there dancing and stock tanks, 12% at open, i say we've hit a top in this crazy, bulled up ipo market where everyone is going public. no, i'm saying that. that signals rationality? that signals that maybe people are coming back down-to-earth and maybe this insanity with that giant purple thing, i don't know what that is, what do you guys think. >> last time i saw this, pets.com. melissa: that's good. >> henry blodget touted that stock. coy be wrong. but journal, former intergnat analyst turned junenallist. but the stock went up back

the new games are farmville ii, zynga, poker and words with friends. >>> jack war is planning to rollsports sedan to compete with the bmw 3 series and mercedes-benz c-class. the new jaguar is expected to arrive in europe next year and make its debut in the u.s. by 2016. >>> intel buying smart watchmaker basis science between 100 million and $150 million according to reports. [buzzer] google, apple, microsoft and samsung were also interested in buying the company. david. david: that's all right. intel is important to mention. remember tomorrow -- sandra: all great stories. david: tomorrow you will see the ceo of intel right here. liz has interview with him. 3:00 hour. through to 4:00 hour eastern time. markets recovered, crisis in ukraine remains tense. war of words between russia's president vladmir putin and secretary of state john kerry. he visited kiev and strongly criticized russia. sandra: with us from kiev is fox news's amy kellogg. amy? >> hi sandra, hi david. yes an awful lot of words today, and strong words from secretary of state john kerry here in kiev and president vladmir

you look at a company like zynga that had a huge hit with "farmville" and they have not been able toepeat that. is that a lesson for king digital? >> if only five games fit on the screen, if you have six, not all of them can fit. that is the problem with the scale. companies like zynga that have tried to bring too many outings to the market. they find they have a hard time doing that, as they cannot repeat the same success. the way a modern channels of distribution or, they put a bright spotlight -- work, they put a bright spotlight on a smaller number of products. >> they do. when you're developing the games, and you develop through digital chocolate and on the educational front. how do you cut through the noise? my new company, if you somethingre making that is in a unique space helping children learn social and emotional skills. it is a new area. >> but gaming is antisocial. >> it is both ways. it is like real life in that regard. store we are the only game that teaches children's social and emotional skills. if word gets around, people will find it. it is a change in the business

in the space of the ryan-murray agreement, seeing that we could get a preparations, we do have a "farmville. last year alone the deficit declined by $400 billion in a one-year period. the part that is rewarding -- it is challenging in many ways -- but the part that is rewarding is when you see that progress. >> you are in the other washington. time for a couple quick questions. yes. good afternoon. , there is the budget a common thread of climate change resiliency. whether it is epa or commerce or other items. how is that paid for? what is the theme behind that? i understand tomorrow the white house will host an event to follow through on that promise. >> the idea and importance of climate resilience -- i am glad you see this flows throughout -- because it is an idea that we think is an important one in terms of getting ahead of some of the challenges that we are facing as a nation in the climate. of the broader piece president's overall climate action plan. this resiliency part is an important part of that. we do things like funds, and you see in the proposals to fund the states and ocala

within that "farmville" was about $20 billion in cuts over the next 10 years.hin that farm bill, with about $20 billion in cuts over the next 10 years. the money for the ukraine they are talking about, as i understand it, is already in the state department budget. it is what is called reprogramming -- >> it is not one or the other or not borrowing. >> i don't believe so. we just got to figure this out. >> speaking about figuring out how to pay for things, we saw the white house released their budget and immediately the republicans criticized. >> that was a surprise. >> they said, look -- >> and i bet the democrats defended it. >> hey, you know how washington works. they said, look, there wasn't enough cuts or even limits to entitlement spending. in fact, senator ron johnson was on our program and he said two thirds of spending in the budget was untouched. i want you to listen to part of what senator johnson said to us last week. >> what congress should do right now is take the budget agreement, we should go through a very thoughtful process of appropriations wh

shares have fallen since its 2011 ipo as users defected from its "farmville" game to candy crush.at cannot happen for candy crush? there were rumors but they pulled back. >> the reason they pull back and waited is for king to come up with some other offerings area and to diversify their revenue stream and show investors we are not reliant on candy crush. it should not weigh on the offering as such. there -- it is nice they have other games but those games have not had enough time to come up to full speed and show investors that they can be the big hit that candy crush is. >> interesting. we're waiting for that one billion-dollar revenue mark. --you think they lived landed anything else from zynga? >> they have to keep everything controlled. with zynga they were also it's with management and scandals. they have kept this blocks down. a very standard ipo process. they will get all kinds of hype but they are keeping it controlled in terms of an ipo. >> do you play? >> i do not. everyone in the subway i sit next to his playing. 7.6 billion dollars is the potential valuation. thank you

the company, which was once a dominant force on facebook with its game farmville and cityville has notift to mobile games and smart as well as competitors. these days, for "house of cards" powerbroker kevin spacey. he is taking information for -- from his real-life persona to lobby maryland state lawmakers for tax breaks for the show. our reporter joins us with the details on this one. annapolis.y was in what is he looking for from state lawmakers? interesting story about life imitating art imitating life. annapolis, about 30 miles from where the show was at the beset, looking for millions of dollars in tax breaks to keep the show filmed in maryland. .> specifically $18.5 million >> right now the show is the beneficiary of a program trying to lower tv and film production in the state lawmakers are figuring whether they will increase it did the lion share would most certainly go to "house of cards." spend a lot cards" of money in the state and the generated something for that economy to the tune of what order? >> about $200 million so far, and bitter -- and bigger ripple effects, the pe

woulwe do believe they came from farmville? phantom pigs and all.dreams of starting the next facebook in your dorm room? it is friday, here comes spring. ♪ stuart: the latest developments in the search for missing malaysian airlines jetliner. here is what we know now. "abc news" reporting the communication systems were turned off separately. the data reporting system at 1:07 a.m. that implies a deliberate turnoff. next, the plane deliberately flown toward the andaman islands, on the top left of your screen. we're joined by a former cia operations officer who served for 20 years and retired a few years back at the head of the weapons of mass destruction terrorism unit. welcome to the program. could this plane had landed on a small island? >> at this point anything is possible. this aircraft will take a mile of runway to land. you're not putting it down some plays that does not have a major airstrip of some kind. even on the admin islands there are probably two or three are strips like total. stuart: has it crashed? is it under the ocean? or has it la

you go back to farmville, zynga. and they'll be able to repeat that anytime.what insights he's offering? >> he's a very smart man, i think given everything he's gone through, he should have interesting perspective. >> are you worried about the bag amount he may bring with him and or people's perceptions? >> for some people. i came into journalism for the second time with baggage myself. and i'm very grateful to slate and other publications that gave me a chance. >> is this the first step to try to create a political part of the business insider. we don't have a bias either way. we like to call it the way came home with a victory of sorts as well. correspondent lee cowan travels down under. >> reporter: for most australians, the victorian looking sydney cricket ground is as hallowed as fenway park. for 160 years it boasted some of cricket's biggest names, national heroes immortalized in bronze for this day. so when major league baseball came to sydney for the 24th season, you can forgive the crowd for not quite getting america's pastime. >> i love the foul ball

this is clearly an authorizing issue and the 2014 "farmville" just spoke to it. while many believe that this program could be improved, it is not realistic to pay for increases based on proposals by the authorizing committee. ofust mention the presence additional requests. provide 277ld million dollars for the usta, it cannot be -- usda, it cannot be considered because it is above the discretionary cap. chairman rogers says it will write its appropriation bills to be established cap of just over $1 trillion. senate appropriations chairman mikulski has said the same thing. the additional request is also irresponsible given our debt and overall economic situation. while the federal budget deficit has fallen sharply the last two years, the congressional budget office estimates that under current law be deficit this year will be $540 billion. even after all the tough battles to reform spending, the deficit spending this year will still expense -- exceeded spending on all non-discretionary spending dollars by $22 billion. they further projected under current policy, p

topping farmville, texas hold 'em poker, bejeweled blitz and subway surfers. and now this morning, the game reportedly rakes in nearly $10 million a week. thanks to its more than half a billion users who play the game over a billion times each day. but in the world of fickle tastes and constantly changing obsessions, investors may not be as sweet on candy as its users. >> selling a fad product, the challenge is really, are you going to be able to turn that into hits going forward? >> reporter: now you want to keep in mind companies like this, they do tend to trade very volatilely. so if you're going to invest in it, be prepared for that volatility. and if you're just learning about this game today, be prepared to be hooked. hooked on these little candies, guys. i got to get back to it, level 235. >> wow. >> wow. >> not bad at all. >> yeah. >> note to self, create an addictive game and sell it. >> for lots and lots of money. thanks, rebecca. >>> let's get a check of the weather. i know we keep saying it is spring. but not springlike conditions. >> no, not at al

we want to expand on that with a bio-based product opportunities the "farmville" presents. this bill also focuses on innovation. three innovation institutes microbialn anti- resistance, pollinators, and the bio product manufacturing will help in reserving our agricultural production and expand new opportunities for agricultural products. and we will also focus on an effort to do a better job of addressing the challenges the poultry industry faces with disease. we have antiquated facilities, which is frankly true of our anti-agricultural research entire -- of our agricultural service. we have to address our infrastructure. one way to look at that is to look at our unobligated balances, allowing us to retain those balances and use them to upgrade our facilities. this would also give us an opportunity to better manage and perhaps reduce the 70 million square feet of space we currently operate, lease, or own. as i shared with you earlier yesterday, mr. chairman, i think there is an opportunity for us to save resources by right sizing our rental properties within the capital are

they're not just going to create farmville in virtual reality, that they want to expand this into businessespeople can build and make money on, guys. >> so people tweeting -- what was the last one? how much did they pay for the last one? >> $19 billion. >> reporter: yeah. a little bit more. about ten times more, roughly. >> you add it all up, any profits? buying any profits with either of these companies? >> reporter: absolutely. oculus doesn't even have a shipping product yet, so this is very different what what's app which has hundreds of millions of users. that's a global play. this is betting, you know, differently than the wearable economy or something like that that the next interface is actually going to be something that we wear on our faces. whether that means there are advertising possibilities for letting people tour real estate, for letting them test drive a car virtually, it will be interesting to see if it pans out. >> yeah, we immediately took it into the gutter with the sex applications. that drives all technology, right? >> by "we," we mean joe. >> yeah, it's a royal -- half

candy crush because next year it's not -- >> any steady state of candy crush is the steady state of farmville be managing their expenses, right? they are profitable, but managing expenses and hiring enough developers to make sure you do have a follow-on. >> yeah, but not too many. that's where zynga got into trouble trying to do the international expansion creating that overhead too quickly they drank their own kool-aid. >> you do have this spectacular new platform where you can roll out a game at zero cost, not to develop it but distribute it, can be on a billion phones in a week. so the earnings they put up shows the power of this, it's staggering. but there are a lot of developers, very whimsical, you don't know what catches fire. it's like investing in a movie studio at the peak when the movie is out there on opening weekend and then watching it go. that's tough. >> they don't need dozens of developers, they need the flappy bird back. >> that's right. final point, do you think the ipo window is crowded? >> i think that folks are now starting to take advantage. >> it's now or never. >> yes