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SEC Filing Reveals Details of Zynga's Relationship With Facebook 53

Posted by Unknown Lamer
from the slash-wars-ville dept.
bizwriter writes with an article in bnet. From the article "An amended S-1 filing for Zynga's eventual IPO offers details of its relationship to Facebook. There's plenty of interesting stuff there in the open, but some partially redacted sections hint at why Zynga is so dependent on Facebook as a channel to get to its market — and why Facebook doesn't deploy its own games." It appears that Zynga is allowed to get away with quite a bit thanks to all of the ad revenue they bring in for Facebook. Who has the upper hand in this relationship?
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SEC Filing Reveals Details of Zynga's Relationship With Facebook

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  • by Anonymous Coward

    Is it really surprise that a large revenue generator for Facebook also has special contracts with Facebook? This is how it works everywhere.

  • by MathiasRav (1210872) on Tuesday July 19, 2011 @05:40PM (#36816542) Journal
    In a relationship and it's complicated.
  • by girlintraining (1395911) on Tuesday July 19, 2011 @05:48PM (#36816644)

    This just in:

    Zuckerberg is the bitch in the relationship.

    • by anyGould (1295481) on Tuesday July 19, 2011 @05:58PM (#36816750)

      This just in:

      Zuckerberg is the bitch in the relationship.

      For now.

      But Zynga is in control only so long as Facebook needs that revenue. The moment they don't, Zynga will find itself on the wrong end of a TOS change.

      • Is Facebook going to let Zynga move everyone over to Google+? The game data is all on Zynga, I would think. It would be a bit of a coding challenge, and it would depend on the Google+ API, but FB cannot risk forcing a big source of income walk over to Google+, where it would help move users.

        • by gknoy (899301)

          Can they stop it anyway, though? I'd be surprised if Zynga wasn't already working on a Google+ API version of their most lucrative games.

    • by Raenex (947668)

      This just in:

      Zuckerberg is the bitch in the relationship.

      This just in: You're clueless. There's a horde of Zynga clones willing to take Zynga's place on Facebook.

  • So Zynga can't put Farmville on Google+. Zynga can create a separate subsidiary to do Google+ games. They can't interoperate with games on Facebook, though.

    Zynga even has to cut Facebook in on sales of Zynga's gift cards. But they get a [redacted] discount on Facebook's "credits".

  • That's what I do.
  • by sloth jr (88200) on Tuesday July 19, 2011 @07:23PM (#36817382)
    ... I'm not sure I recall an IPO where the business was so heavily dependent on a private company. Would you invest in Zynga?

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