Zynga is a major player on Facebook according to the millions of people who play Farmville or Mafia Wars. The games’ creator has been increasingly unhappy with the way things have been going lately, which prompted rumors all over the Internet as to whether the two would part ways. Today, though, the companies happily accepted each other as friends and signed a five-year deal. You can breathe easily now… your games aren’t going to leave your favorite social networking site.
Zynga has been dissatisfied with the cut of the profits that Facebook had been demanding. They also didn’t much like the tape put over their proverbial mouths when FB cut off several ways that the gaming company could contact potential game players. This caused Zynga to purchase even more ads than they already had spread out on the site. While the details of the deal have not been made public, I suspect that Facebook sweetened the pot in the advertising area. I cannot think they would lower the amount of revenue they would take in. It’s more believable to think that Zynga is getting a nice deal on ad rates – or perhaps even free advertising.
After all, if Zynga were to take their games and go home, how many people would continue to log in to Facebook every day? There are an awful lot of people out there rabid about their farms, cafes and mafia characters.
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