Zynga CEO Mark Pincus just put himself out to pasture.
The founder of the struggling online game company stepped down to make way for Don Mattrick, the head of Microsoft’s XBox business.
The maker of “FarmVille” and other games said Pincus will stay on as chief product officer and chairman of the board.
Unlike Groupon CEO Andrew Mason, who was ousted by his more powerful co-founders this, Pincus controls more than 60 percent of the voting power and had more say over his own fate.
Still, the collapse of Zynga’s stock put him under tremendous pressure,
Zynga shares shot up more than 10 percent on the news, which was first reported by AllThingsD.
The stock closed at $3.07 yesterday — a far cry from the company’s $10 initial offering price in December 2011.
Still, Pincus vacates the corner office a far richer man than when he entered it.
Even before the company went public, he sold $100 million worth of stock privately.
Last year, Zynga held a secondary offering that priced shares closer to $12, resulting in a $192 million payday for Pincus.
The 47-year-old founder still owns 95 million shares worth almost $300 million based on yesterday’s closing price, although his fortune was once valued at well north of $1 billion.
Pincus has blamed Zynga’s sharp decline on his inability to respond quickly enough to consumers’ shift to smartphones and other mobile devices.
“I’m excited to announce that Don Mattrick will be joining us as Zynga’s new CEO and member of our board,” Pincus wrote in a note to employees and shareholders yesterday.
“I wanted to let you all know why I made the decision to recruit Don and what I think it means for all of us.”
Mattrick comes with some controversy of his own.
He has taken flak for the rollout of the new Xbox One console, which gamers attacked for its high price and its maker’s attempts to limit game sharing.