Zynga to leave Facebook?

Lately, there have been speculations that because of the spat between Facebook and Zynga, the latter is secretly contemplating on leaving the leading social networking site and putting up its own social gaming site, Zynga Live!

This came about when Facebook started to require all 3rd-party applications to use its own payment system (Facebook Credits is the native virtual currency). As such, all transactions that go thru their system, Facebook gets a 30% cut.

That 30% is a huge cut. Zynga is said to be making about $300 million a year and only 1/3 of it is thru lead generation. That means Facebook could be getting 30% of the other 2/3 (or $200 million) which is $60 million.

That’s 60 million reasons for Zynga to re-think its Facebook partnership. In one end, Zynga relies a lot on the Facebook network to acquire traffic but at the same time Zynga is the top advertiser on FB. The two clearly needed each other. It’s interesting to note that the owner of Zynga, Mark Pincus, is also an early investor in Facebook.

If the breakup does happen, users will have to choose between Facebook and Farmville (not really, actually, since users can still go to both but that would mean less time spent on FB). In any case, gamers can also go to FarmVille.com and log in using the FB accounts to continue to play.

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

15 Comments

general link directory says:

13 years ago

Thanks so substantially, this details was spot on for me. I’ll bookmark this website for future updates. Thanks once again.
- Reply
Deric says:

14 years ago

Facebook will live without Zynga. The question is, can Zynga do it without Facebook? I don’t think so.
- Reply
Craig Freestone says:

14 years ago

Hatching A New Social Media Marketing Book…
- Reply
Jon says:

15 years ago

I think if Zynga leaves Facebook, it won’t be long before another game developer fills in that void.

Therefore Zynga needs Facebook. Yeah, a lot of their games are popular right now, but when people get tired of those, Zynga would need a platform to promote new or other games easily.

Facebook can put games into their system, but Zynga may not be able to successfully put a social network into their system.

On another note, 30 percent is a lot!! Greedy jerks.
- Reply
ligrev says:

15 years ago

That would mean a BIG shift in the balance of power. Lol.

-Sent via YugaTech Mobile App
- Reply
loadex says:

15 years ago

they complement each other… or zynga can go to friendster and souped up the competition. I guess friendster will accept any amount lower than the 30% FB is asking.

for any social networking site any $ generated is very much welcome i guess.
- Reply
Anony says:

15 years ago

Don’t you know how many games zynga created that got FB users addicted? hmmmm FB will lost it shares probably just another friendster in the future if zynga leaves.
- Reply
astig says:

15 years ago

nakakainis na rin yan farmville, lagi nagloloko yun server. minsan magtanim ka tapos pag binalikan mo after you log out, wala naman natanim back to zero ulet. hay.
- Reply
Onynz says:

15 years ago

Well, its a two way street, I believe they both need each other to survive or else.. we’ll again see fs’s resurgence…
- Reply
lolipown says:

15 years ago

^
isn’t it the other way around?
- Reply
daddy joey says:

15 years ago

zynga is one of the reasons behind FB’s success
- Reply
simplynice93 says:

15 years ago

Zynga is a big loss to Facebook. But if they indeed leave, FB lovers will surely find another game to enjoy.
- Reply
Calvin says:

15 years ago

as long as player’s don’t have to create a separate account to play but can still use their fb account. then ok lang siguro. usually you have two windows naman eh, one for the game and the other for fb.
- Reply
Carlo says:

15 years ago

I don’t think Zynga will make it without Facebook. Facebook is full of social games that are waiting to replace Zynga if and when it leaves.
- Reply
wh@â„¢ says:

15 years ago

how sad if they will leave the FB site. less time will be spent on fb..
- Reply

YugaGaming