Zynga Files for IPO, Lifts Veil On Financial Performance
Zynga Files for IPO, Lifts Veil On Financial Performance

Two weeks after Zynga reported lousy quarterly financial results, sending its stock price into a tailspin, the company has revealed in a regulatory filing that COO John Schappert is resigning as an executive and board member.

News of Schappert's resignation comes a week after insiders said he was being partially blamed for an atrocious quarter and had been stripped of some of his duties.

Schappert was one of the more seasoned video-game executives at Zynga, having been lured to the maker of Facebook and other social games via a hefty pay package reportedly worth north of $40 million. Previously, he was with Electronic Arts.

Late last month, Zynga, the maker of "Words With Friends" and "Draw Something," reported a second-quarter profit -- after certain items -- of a penny, missing Wall Street's expectations of 6 cents and causing the stock to plunge after the closing bell.

On Wednesday, Zynga shares were trading at $2.95 apiece, down 71 percent from their December IPO price of $10 and off 42 percent since its second-quarter financial report.