Zynga and Facebook end special relationship
December 3, 2012 | 09:35
Companies: #facebook #zynga
Facebook and Zynga's special relationship has drawn to a close according to an SEC document filed last week.
The notorious game developer had enjoyed several privileges from the social networks in return for supporting Facebook Ads including exclusivity arrangements from the platform and a certain level of guaranteed traffic to Zynga's titles.
Facebook would also receive fees from Zynga in return for this arrangement, the nature of which was first officially revealed when the social network floated its initial public offering in May.
The arrangement between Facebook and Zynga will terminate in March 2013. Following this, Zynga will have more freedom to promote and launch anything it wants on its own Zynga.com platform.
Following the news Zynga's already tumbling share price fell by a further 13%. The studio has recently announced significant job cuts, studio closures and over the last year has seen a steady exodus of executive level staff. Approximately 80% of the studio's revenue is currently generated from Facebook's user base.
The move would technically allow Facebook to create its own games platform, although it has not announced any plans to do so. The social network instead has released a statement to say it intends to bring its relationship with Zynga in line with its relationship with other studios.
'We have streamlined our terms with Zynga so that Zynga.com's use of Facebook Platform is governed by the same policies as the rest of the ecosystem,' reads a statement from Facebook.