Zynga and Facebook Altering Their Close Relationship

24/7 Wall St.

zynga-logoShareholders are going to get to find out about what it feels like to move back toward book value in shares of Zynga Inc. (NASDAQ: ZNGA). The company is very dependent on Facebook Inc. (NASDAQ: FB) for revenues, but a new amended agreement is going to change that. The company showed in a filing that more distance and flexibility will be the new future as the companies lighten up on their interdependence and exclusivity in ads and credits. Facebook also will not have exclusivity on new game launches.

Today’s news should be of little surprise. The writing was on the wall. Zynga needs to show that it can live without such a Facebook step-brother relationship. And Facebook’s payments to Zynga already have fallen by about one-fifth. One concern is that Facebook may now develop its own social games, although this remains to be seen.

This is one of…

View original post 82 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s