Fri, Nov 30, 2012 | 02:01 GMT
Zynga and Facebook sign new, less co-dependent contract
Zynga and Facebook have re-negotiated their mutual contract to better reflect a new world where neither company is as central to the other as five years ago.
Zynga, which once provided 12% of Facebook’s total revenue, has noted diminishing returns from apps hosted by the social network, to the detriment of both companies.
In response to this, Venturebeat reports the two have drawn up a new contract to replace the previous one, signed five years ago.
Under the terms of the new contract, Zynga is free to unshackle web portal Zynga.com from Facebook, removing the need for Facebook display ads and Facebook credits as primary currency. The currency in particular is of great benefit to Zynga as it removes Facebook’s 30% cut.
Meanwhile, Zynga no longer has to add Facebook ID log-ins on mobile apps, doesn’t have to bring third-party published games to Facebook, and won’t have to make its upcoming real-money gambling games Facebook exclusives. It also has a guarantee that Facebook won’t offer better terms to any other developer.
But Facebook isn’t geting the short end of the stick entirely; Zynga promises to make its games available through Facebook in addition to other destinations; won’t promote Zynga.com inside Facebook apps; and the social network has escaped a previous restriction banning it from developing its own games.
It doesn’t actually want to, though.
“We’re not in the business of building games, and we have no plans to do so. We’re focused on being the platform where games and apps are built,” a statement advised.
Zynga’s historical reliance on Facebook has led to hard times as social gaming dips, but the company is shoring up by diversifying into web and mobile as well as real-money gambling.