Amendments In Agreement: Zinga Less Tied To Facebook

December 1, 2012  Posted by :Unknown Leave a comment

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The two companies amend their agreement. Zynga will no longer have to show Facebook ads, use Facebook credits, or release games exclusively on the Facebook platform.

Zynga, the developer behind previous megahits like FarmVille and CityVille, has seen its shares fall 13 per cent following the announcement.

When the current agreement expires, on March 31, 2013, Zynga players will no longer be able to share their progress on Facebook, while Zynga itself won't be able to promote its games on Facebook or display Facebook branding on its own site.

Cross-promotion, as defined by the agreement, is the placement of Zynga.com ads within Zynga games played on Facebook's platform. For example, if someone is playing Farmville 2 on Facebook, there can no longer be an ad encouraging players to try Zynga Poker on Zynga.com in exchange for Farmville 2 credits. The new terms also mean Zynga can't use e-mails from Facebook to promote Zynga.com.

Despite having its own games platform, the news is a bad blow for the company which, at it's peak, attracted 82 million players a month.

Last month, Zynga announced job cuts and studio closures in an effort to save costs. The message from Facebook is that this move brings Zynga in line with other game developers using the social network.

Facebook said in a statement,

We will continue to work with Zynga, just as we do with developers of all sizes.

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