Zynga 2013 Annual Report Download - page 20

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Table of Contents
If we are unsuccessful in addressing these risks and challenges it would adversely harm our business and prospects.
Our business will suffer if we are unable to successfully acquire or integrate acquired companies into our business or otherwise manage the
growth associated with multiple acquisitions.
We have acquired businesses, personnel and technologies in the past and we intend to continue to evaluate and pursue acquisitions and
strategic investments. These acquisitions and strategic investments could be material to our financial condition or results of operations.
Challenges and risks from such investments and acquisitions include:
16
•
NaturalMotion
’
s pipeline of future products under development may take longer than predicted to launch or may fail to launch at all;
•
the difficulty of integrating NaturalMotion
’
s tools and technology into our current and future mobile products; and
•
the risk that the implementation of our existing models and mechanics fails to enhance NaturalMotion
’
s products.
•
negative effects on products and product pipeline from the changes and potential disruption that may follow the acquisition;
•
diversion of our management
’
s attention away from our business;
•
declining employee morale and retention issues resulting from changes in compensation, or changes in management, reporting
relationships, or future prospects;
•
significant competition from other game companies as the social game industry consolidates;
•
the need to integrate the operations, systems, technologies, products and personnel of each acquired company, the inefficiencies and
lack of control that may result if such integration is delayed or not implemented, and unforeseen difficulties and expenditures that
may arise in connection with integration;
•
the difficulty in determining the appropriate purchase price of acquired companies may lead to the overpayment from certain
acquisitions and the potential impairment of intangible assets and goodwill acquired in the acquisitions;
•
the difficulty in successfully evaluating and utilizing the acquired products, technology, or personnel;
•
the potential incurrence of debt, contingent liabilities, amortization expenses or restructuring charges in connection with any
acquisition;
•
the need to implement controls, procedures and policies appropriate for a larger public company at companies that prior to
acquisition had lacked such controls, procedures and policies;
•
the difficulty in accurately forecasting and accounting for the financial impact of an acquisition transaction, including accounting
charges and integrating and reporting results for acquired companies that do not historically follow U.S. GAAP;
•
risks associated with our expansion into new international markets and doing business internationally, including those described
under the risk factor caption “Expansion into international markets is important for our growth, and as we expand internationally, we
will face additional business, political, regulatory, operational, financial and economic risks, any of which could increase our costs
and hinder such growth
”
elsewhere in this Annual Report on Form 10
-
K;
•
in the case of foreign acquisitions, the need to integrate operations across different cultures and languages and to address the
particular economic, currency, political and regulatory risks associated with specific countries;