Friday, 30 November 2012
Zynga revamps contract with Facebook
Posted on 03:47 by Maria Scott
Zynga loosened its ties with Facebook in an amended agreement that had
governed a close partnership between the two companies for years. As per
the new pact, Zynga will no longer be required to use Facebook as the
log-in for users, while Facebook will be able to develop its own games.
Zynga can choose to do away with Facebook Payments as the way for users
buy virtual goods and opt not to show ads served by Facebook.
“Zynga's
mission is to connect the world through games," Barry Cottle, Zynga's
chief revenue officer, said in a statement. “In order to do this, Zynga
is focused on building enduring relationships with consumers across all
platforms from Facebook and Zynga.com on the Web to tablets and mobile."
Read Zynga's regulatory filing here.
Facebook,
however, in a statement has said that the social network has no plans
of getting into gaming business. "We're not in the business of building
games and we have no plans to do so," Facebook clarified in a statement.
"We're focused on being the platform where games and apps are built."
It is believed that there are various
parts of the new deal that could hurt Zynga's interests in near future.
As per the terms of the new pact, Zynga will be barred from using
Facebook to “cross-promote” its games. This means when a player on
Zynga.com shares their accomplishment or any activity on a given game
that shows up on their Facebook Timeline, the post will not link back to
Zynga.com. This would definitely dampen traffic to Zynga.com.
Both Zynga and Facebook have been making efforts to reduce their inter-dependence. In an attempt to come out of Facebook's shadows, Zynga launched its gaming platform, Zynga.com. Facebook, in the meanwhile, started wooing other game developers.
"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," a Facebook spokesman said
in a statement. "We will continue to work with Zynga, just as we do with
developers of all sizes."
Source: http://www.thinkdigit.com/Internet/Zynga-revamps-contract-with-Facebook_11578.html
Source: http://www.thinkdigit.com/Internet/Zynga-revamps-contract-with-Facebook_11578.html
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