Wednesday, July 20, 2011

Zynga IPO: Facebook Basically Owns Zynga [Business Insider SAI]

Playing strategic games; don’t bother looking for the currently-popular Zynga games on Google+ anytime soon, for example

There are a couple things to take away from this:

  • Facebook basically owns Zynga. We knew that Zynga had to share virtual goods revenue and spend advertising on Facebook, but this goes beyond a tax. This is control. Facebook decides what games Zynga can launch, and when, and how successful these games will be.
  • The Facebook Platform is not a level playing field at all.

Zynga IPO: Facebook Basically Owns Zynga

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