Sellers SLAP Zynga as Arena and Sprint Attract Buyers
Sprint Nextel Corporation (NYSE:S): “We all live in an ATTizon (NYSE:T)(NYSE:VZ) duopoly now. And they will do with us what they please,” says Tero Kuittinen after checking out Verizon’s shared data plans. The plans, he thinks, which raise the minimum a smartphone user aiming to upgrade has to pay to $90 per month (up from $70/month) as an effort to keep voice/text revenues from being cut down by mobile apps, and believes they’re driven by thinking that “Sprint and T-Mobile are now so weak they offer no effective competition.”
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Zynga Inc (NASDAQ:ZNGA), in the face of its stock dropping lower than $5 for the first time Tuesday, reported that it will make expensive investment “Draw Something” the first mobile game it will release in mainland China, and will partner with a popular Chinese social network in an effort to salvage share prices. Zynga will join with Sina (NASDAQ:SINA), which provides a Chinese microblogging service (like Twitter) that is very popular there. This union will permit the San Francisco online gaming service to offer “Zynga’s first mobile game localized in the Chinese language and culture,” as described by company spokeswoman Cynthia Saw.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) shares have been reaching new heights as investors show interest in the pending regulatory ruling on the company’s obesity-fighting drug candidate Lorcaserin. An FDA panel last month voted 18 to 4 (with one abstention) to recommend approval, and determined that possible benefits from the drug are greater than potential risks in long-term use by overweight and obese patients. The FDA often, but not always, follows panel guidance.
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