According to a report by news agency Reuters, a new deal between Facebook and Zynga was finalised this week with new terms causing Zynga stock to fall as investors worry about the future of the gaming company.
Facebook and Zynga have been inextricably linked since they formed a pact in 2010 and not only did Zynga stock fall by 12 percent after the announcement, so too did the value of Facebook stock which fell by a more modest 5 cents.
PJ McNeaky from Digital World Research told Reuters: “Zyngas’s favoured nations status is gone but it seems like it has been slipping awat for a while now” and the new agreement appears rto reaffirm this shift for the company.
Basically the new partnership between Zynga and Facebook will now see the two companies working more independently. Zynga will now have more freedom to be able to operate its own website but this comes at the expense of removing the ability of Zynga to be able to promote on Facebook and to draw on the billion users that it boasts.
Zynga website users will also now have less of a connection to Facebook and they will not now be able to post about progress or send messages to friends on Facebook through the external website.
Gamers will still be able to play their favourite games on Facebook including Mafia Wars and FarmVille but there will now be no cross promotion within Facebook of other Zynga games.
The link between Zynga and Facebook has always been a very important one, not least because Facebook accounts for around 80 percent of all Zyngas revenue while Zynga contributes to around 15 percent of all revenue for the social media giant.
Many of the other gaming companies have long stated that the partnership between Zynga and Facebook was favouring the company over other games developers so the move will encourage other gaming companies to have confidence in a level playing field on Facebook.
A statement from Facebook said: “We have streamlined our terms with Zynga so that Zynga.com‘s use of the Facebook platform is governed by the same policies as the rest of the ecosystem. We will continue to work with Zynga, just as we do with developers of all sizes.”
The move is being described as mutually beneficial to both companies as it will allow both to have more freedom and to develop in other areas that were previously restricted because of the deep partnership between the two companies.