Facebook and Zynga Redefines Relationship
It has been announced that Facebook and the internet gaming magnate, Zynga have gone back to the drawing table and successfully redefined their relationship. From the inception of Zynga with their famous money making game “Farmville“, they have only used Facebook as the online platform where the game can be found and played but the new agreement seems to have changed all that.
According to reports, the new agreement now gives Zynga more leg room to move about as they can now create and offer games on their own platform i.e. website aside from the Facebook platform. Facebook now has the right to develop their own games which should be a big thing for them although they have quickly announced that they have no intention at this point to start building games. But there might be suggestions that they might have this contracted out if they are indeed interested in building their own games.
The report also has it that Zynga can now choose to forgo the payment system of Facebook. Another big issue with this announcement is that Zynga can now opt out of the displaying of Facebook ads which gives them a great source of generating more revenue for themselves as Facebook share of it would be almost eliminated. Recent financial reports from both companies showed that they have both suffered as the income of Zynga took a plunge. This invariably affected Facebook that previously been heavily dependent on Zynga as a source of income.
Their strategic parting should be handled with caution especially on the part of Facebook since the company still generates about fifteen percent of the income for Facebook and even though this is low from previous years, it is still substantial enough to make a huge difference to the bottom line of Facebook.
2012-12-06 15:00:05
Source: http://www.maxupdates.tv/facebook-and-zynga-redefines-relationship/
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