Feeds

No more fun and games for Zynga as Facebook cuts apron strings

Mummy, you're such a bitch ... bitch

The Power of One eBook: Top reasons to choose HP BladeSystem

Zynga can no longer cream off users from Facebook, after Mark Zuckerberg's company revised a lucrative deal the games outfit once had with the network.

According to a US regulatory filing, Facebook has backed out of a very chummy agreement it had in place with Zynga since December 2010.

It's likely that Facebook has lost faith in the online gaming firm, which trades on Wall Street. After all, the original deal stated that it could only stay in place if certain conditions relating to growth targets for monthly unique users of a number of Zynga games could be met.

As of Facebook's initial public offering in May this year, it was revealed that Zuck's company derived 12 per cent of all its 2011 revenue from Zynga.

By July this year, that close partnership appeared to be coming unstuck when Zynga's boss Mark Pincus began to publicly grumble about Facebook after the network opened up its platform to rival online game outfits.

And soon Zynga will no longer be able to tap into Facebook's 1 billion-strong userbase to try and shunt people over to its games such as Words With Friends and Farmville from the site.

Facebook told US Securities and Exchange Commission regulators on Thursday that it had freed up Zynga from having to use its payments system. It said the company may also elect not to display ads served by Facebook.

It continued to sever the apron strings by stating:

Zynga’s use of the Facebook platform with respect to Zynga sites will, subject to certain transition provisions, be governed solely by Facebook’s standard terms and conditions for game developers.

In addition, Amendment to Addendum No. 2 implements a requirement that, subject to certain exceptions, Zynga must launch new social games on the Facebook site concurrent with, or shortly following, any launch on Zynga sites or third-party social platforms, and eliminates the requirement that Zynga use the Facebook platform as its primary non-Zynga platform to launch social games. Amendment to Addendum No. 2 also removes the requirement for Zynga to use the Facebook platform as the exclusive means of login with respect to games not hosted on the Facebook site.

Zynga confirmed that its distancing from Facebook would take place at the end of March 2013 in a move that could help the gaming outfit's rivals increase their sales via the network.

Pincus's firm does have its own Zynga.com platform, but it will arguably soon become more difficult to lure people over to that site once it's heavy dependence on Facebook is a thing of the past. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.