Aww, Facebook and Zynga Make Up Through 5 Year Agreement
Facebook and Zynga have made a 5 year partnership to keep Zynga’s games on the social network company’s platform. Recently it was rumored that Zynga was planning to break away from their dependence on Facebook by starting a social network of their own. This was because Facebook was taking too much of a commission from the sales of Zynga’s virtual goods.
Facebook takes 30% from every transaction, while many other payment providers take only a 3.5% commission. Apple takes the same commission from the sales of virtual goods on the Apple App Store as well.
Zynga’s valuation is about $4 billion due to all of their funding and success on Facebook. Zynga has been aggressively acquiring and integrating competitors recently.
“We are excited about Facebook’s long-term commitment to social gaming and Zynga, and look forward to working with them and other platform providers to bring the best social gaming experience to users worldwide,” stated Zynga CEO and founder Mark Pincus.