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Friday, November 30, 2012
Zynga And Facebook Amend Partnership Deal

Zynga is loosening its ties with Facebook and plans to deal with the social networking company on the same basis as other developers.

According to documents filed with the Securities and Exchange Commission, on November 28, 2012, Zynga and Facebook amended their agreement signed between the companies in 2012.

Under the new agreement, Zynga's use of the Facebook platform and any Facebook data on any Zynga service offered through a Zynga game page (e.g., Zynga.com) will be governed by Facebook's standard terms of service, effective on March 31, 2013. Zynga will no longer be separately obligated to display Facebook ad units or implement Facebook credits on any such Zynga game pages. In addition, Zynga will have the right to cross-promote any games that are off of the Facebook web site from Zynga services that use Facebook data and to use e-mail addresses obtained from Facebook, will be limited by Facebook's standard terms of service, subject to certain exceptions.

In addition, Zynga, subject to certain exceptions, will no longer have to use Facebook as the exclusive social platform for the Zynga properties and to grant Facebook certain title exclusivities to Zynga games on the Facebook platform.

In addition, effective on March 31, 2013, certain provisions related to web and mobile growth targets and schedules will no longer be applicable and Facebook will no longer be prohibited from developing its own games. Further, Zynga's right to cross-promote between games on the Facebook web site will be governed by Facebook's standard terms of service.

Currently, Zynga is pretty reliant to Facebook, as it receives 80 percent of its revenues from Facebook. For facebook, the agreement with Zynga's games contributed to around 15 percent of the network's income.

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