Facebook and Zynga Loosen Their Ties In A New Deal

Posted Nov 30, 2012

A couple of years ago, Zynga was doing very well financially through the Facebook ecosystem.  Facebook was also benefiting from Zynga’s virtual currency purchases.  Today there are less people playing FarmVille and the company has not had the same traction ever since.  Facebook and Zynga’s stock prices have been taking a beating and now the two companies are loosening their ties with each other.

Under a new deal, Zynga is free from having to implement Facebook Credits on Zynga game pages and they are free from using Facebook as their exclusive social platform.  Zynga has an interest in developing their own platform and establishing their own ad partnerships.  Zynga no longer has to display Facebook ads in their games either.

Facebook has the freedom to develop their own games now though.  When Facebook makes their own games, you can be sure that they will utilize the social network to constantly promote them.

Zynga signed a partnership with bwin.party to setup real money games in the United Kingdom and Facebook may just work with them on it too.  ?If Facebook allows real money gambling games on the Facebook web site in countries where Zynga has real money gambling games, Zynga will subsequently launch such games on the Facebook web site, if certain conditions are met by Facebook,? stated Zynga in their filing.