>"Aside from no faith in management, what else could be the reason for the discount?"
At this point Zynga could be liquidated and still produce value. But the lower-than-book valuation implies the fear that Zynga will eat into its assets (re: cash) before that has a chance of happening, thus lowering its value.
From the parent level comment: The book value doesn't take into account an expected write off of $90m, which would drop the price per share to lower than the share price
At this point Zynga could be liquidated and still produce value. But the lower-than-book valuation implies the fear that Zynga will eat into its assets (re: cash) before that has a chance of happening, thus lowering its value.
So, basically, no faith in management...