Zynga - Relationship With Facebook

Relationship With Facebook

On July 18, 2011, Zynga filed an addendum to its Form S-1 detailing its relationship with Facebook, including the 2010 five-year agreement to exclusively use Facebook credits. According to the released information, all covered Zynga games that use Facebook integration must remain exclusive to Facebook for the duration of the agreement, and Zynga is not allowed to release new games on an undisclosed list of other social networks. Also, Zynga is required to notify Facebook of any new games at least one week prior to their release. Finally, Facebook agrees to help Zynga reach "certain growth targets for monthly unique users of Covered Zynga Games".

On October 11, 2011, Zynga announced plans to create their own platform in which users can play the company's games. Although the platform, Project Z, will still have major ties to Facebook it is believed to be the first major step away from the social media giant.

Facebook’s S-1 Filing indicates Zynga generated 12% of Facebook’s revenue in 2011.

In November 2012, Facebook ended its special agreement with Zynga. Effective March 31, 2013, Zynga will be bound by the standard Facebook Platform policies.

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