Zynga has announced that it will be signing a deal with Yahoo! Inc. (NASDAQ:YHOO) for game distribution. Prior to this deal Zynga was highly depending on Facebook for gaming distribution. This caused a conflict because they felt that Facebook was over-charging for virtual credit commission.
Zynga said that they would start a social network of their own, but Facebook and Zynga ended up making a strategic deal instead. Zynga and Facebook decided to split revenue that application developers generate from Facebook’s 400 million users. Zynga games include Mafia Wars, Farmville, Zynga Poker, and Treasure Isle. The games will be integrated into Yahoo! Games, Yahoo!’s homepage, Yahoo! Messenger, and Yahoo! Mail. [LA Times]