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SEC Filing Reveals Details of Zynga's Relationship With Facebook

Posted by Unknown on from the slash-wars-ville dept.

bizwriter writes with an article in bnet. From the article "An amended S-1 filing for Zynga's eventual IPO offers details of its relationship to Facebook. There's plenty of interesting stuff there in the open, but some partially redacted sections hint at why Zynga is so dependent on Facebook as a channel to get to its market — and why Facebook doesn't deploy its own games." It appears that Zynga is allowed to get away with quite a bit thanks to all of the ad revenue they bring in for Facebook. Who has the upper hand in this relationship?

53 comments

  1. What's Zynga? by Minter92 · · Score: 0

    I know facebook is that thing that people who don't know about computers use

    1. Re:What's Zynga? by sgrover · · Score: 1

      Or that people who do know about computers *have* to use to support their customers/friends/family.

    2. Re:What's Zynga? by Anonymous Coward · · Score: 0

      Sure you're not talking about iTunes?

    3. Re:What's Zynga? by Anonymous Coward · · Score: 0

      Troll much!?

    4. Re:What's Zynga? by Osgeld · · Score: 1

      its a company that makes a series of web based games for people that are unable to install the sims or civ due to their stupidity

    5. Re:What's Zynga? by Anonymous Coward · · Score: 0

      A company that makes social networking games. MafiaWars, FarmVille, and the like. They are pretty huge in that arena.

      Also: People who know about computers, and geeks of all persuasion also use FB.

    6. Re:What's Zynga? by RazzleFrog · · Score: 1

      So you're saying that people who know about computers are anti-social? Talk about captain obvious.

    7. Re:What's Zynga? by Anonymous Coward · · Score: 0

      He's saying that people who are intelligent don't use Facebook.

      Incidentally, they also don't say things like "talk about captain obvious", which isn't even a real saying but rather a nonsensical combination of two colloquialisms, each of which is used exclusively by people who don't have anything intelligent to say about a subject.

    8. Re:What's Zynga? by h4rr4r · · Score: 2

      Says who?
      I don't use it and I know plenty about computers. If you are my friend or family you can call me, contact me via skype or one of many chat protocols and email. If you are a customer you have my email and business phone number.

    9. Re:What's Zynga? by Lunix+Nutcase · · Score: 1

      Tough words coming from a pasty lardass who can only leave his parent's basement through the help of a forklift.

    10. Re:What's Zynga? by Anonymous Coward · · Score: 0

      I'm fairly sure most of those who play FarmVille and other games also would like to and have played The Sims. It's the same demographic.

      Also, I actually really like the new CivWorld game in Facebook. It has really interesting stuff and feels like an actual game. One game is also played with around 200-300 other people and you have to coordinate stuff with your civilization.

    11. Re:What's Zynga? by RazzleFrog · · Score: 1

      So intelligent people are anti-social, too? I guess I would also include snarky AC's.

    12. Re:What's Zynga? by EdIII · · Score: 1

      No Kidding.

      I get plenty of crap all day long about why I am not on Facebook and have not "friended" them. The fact I have to even use Skype is bothersome to me. There were others that were worse that indicated if you were idle based on keyboard and mouse movement.

      Seriously, screw that noise.

      You have my email and a phone number. That's good enough.

    13. Re:What's Zynga? by EdIII · · Score: 3, Insightful

      Tough words coming from a pasty lardass who can only leave his parent's basement through the help of a forklift.

      That's just silly. How is a forklift supposed to fit through the door to the basement and navigate the stairs?

    14. Re:What's Zynga? by nabsltd · · Score: 1

      How is a forklift supposed to fit through the door to the basement and navigate the stairs?

      It's attached to a "new" Dalek.

    15. Re:What's Zynga? by lgarner · · Score: 1

      The real amusement here is the s/he seems to think that showing ignorance is actually something to be proud of.

    16. Re:What's Zynga? by improfane · · Score: 1

      Don't mind GP, he's just a troll. We're just waiting for him to get bored with the site.

      --
      Slashdot needs Geekcode | Can anyone recommend any good SCIFI? My tastes: Foundation, Startide Rising, CITY, Ringworld,
    17. Re:What's Zynga? by Lunix+Nutcase · · Score: 1

      Aww, it's so cute how riled up you get over my posts.

  2. Contracts by Anonymous Coward · · Score: 1

    Is it really surprise that a large revenue generator for Facebook also has special contracts with Facebook? This is how it works everywhere.

  3. Facebook and Zynga? by MathiasRav · · Score: 4, Funny

    In a relationship and it's complicated.

  4. Re:Speaking on behalf of /. by Anonymous Coward · · Score: 0

    Just /.?

    I've seen forums that are far less geek-elitist than slashdot, talk about facebook as the new AOL.
    The walled garden, where all the users are fucking retarded beyond belief, and they do what they do, "because they don't know any better".

    Incredible for a network that started off exclusively for students.

  5. Zygna and Facebook by girlintraining · · Score: 4, Funny

    This just in:

    Zuckerberg is the bitch in the relationship.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Zygna and Facebook by anyGould · · Score: 4, Insightful

      This just in:

      Zuckerberg is the bitch in the relationship.

      For now.

      But Zynga is in control only so long as Facebook needs that revenue. The moment they don't, Zynga will find itself on the wrong end of a TOS change.

    2. Re:Zygna and Facebook by Raenex · · Score: 1

      This just in:

      Zuckerberg is the bitch in the relationship.

      This just in: You're clueless. There's a horde of Zynga clones willing to take Zynga's place on Facebook.

    3. Re:Zygna and Facebook by Anonymous Coward · · Score: 0

      This just in, you're clueless.... Zygna games *are* the clones.. I'm not sure they even have two original games. They just duplicated what others had done and pushed them harder (and maybe improved them slightly.. not sure farmville and farmtown were all that different when zygna rolled out their clone)

    4. Re:Zygna and Facebook by Raenex · · Score: 1

      Zygna games *are* the clones

      I never said they weren't. I'm well aware of the articles on the scummy origin of Zynga, including how the owner screamed at his developer not to innovate, and just copy, because he wasn't smart enough, or something to that effect.

      hey just duplicated what others had done and pushed them harder (and maybe improved them slightly..

      Which is exactly what the clones of a clone will do, too.

    5. Re:Zygna and Facebook by darkmeridian · · Score: 1

      Is Facebook going to let Zynga move everyone over to Google+? The game data is all on Zynga, I would think. It would be a bit of a coding challenge, and it would depend on the Google+ API, but FB cannot risk forcing a big source of income walk over to Google+, where it would help move users.

      --
      A NYC lawyer blogs. http://www.chuangblog.com/
    6. Re:Zygna and Facebook by gknoy · · Score: 1

      Can they stop it anyway, though? I'd be surprised if Zynga wasn't already working on a Google+ API version of their most lucrative games.

    7. Re:Zygna and Facebook by Anonymous Coward · · Score: 0

      This just in:

      Look up what Zynga is named after. Then you'll see who the real bitch is.

  6. Re:Speaking on behalf of /. by Lunix+Nutcase · · Score: 1

    I've seen forums that are far less geek-elitist than slashdot, talk about facebook as the new AOL.

    Such as? And please link to the posts as well.

  7. No Farmville on Google+ by Animats · · Score: 1

    So Zynga can't put Farmville on Google+. Zynga can create a separate subsidiary to do Google+ games. They can't interoperate with games on Facebook, though.

    Zynga even has to cut Facebook in on sales of Zynga's gift cards. But they get a [redacted] discount on Facebook's "credits".

    1. Re:No Farmville on Google+ by Nidi62 · · Score: 5, Insightful

      So Zynga can't put Farmville on Google+.

      No Farmville on Google+? If there's a better advertisement/reason than this to switch from Facebook to Google+, I don't know what it is

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    2. Re:No Farmville on Google+ by Internal+Modem · · Score: 3, Funny

      +1

    3. Re:No Farmville on Google+ by Anonymous Coward · · Score: 0

      And as a result, I spend far less time viewing pages that have "google" in the URL than those that have "facebook" in the URL.

      The games, be they worthless or not, are a way to pass the time, online, without needing to look at pr0n.

      I might spend 5 minutes a day, in total, on Google+ but I can easily spend 10 or 20 times that amount of time inside facebook playing games.

      As a result, Google+ will never replace facebook until it too has games. The folks that I know who are using Google+ now are those that never played games. Those that have played games or are seriously into games just don't appear to be there.

      What does that mean for the relative value of their ads? Both worth $0 to me as I never click on them and go out of my way to block as many ads as possible (including those for slashdot.) Building a business model around advertising rather than product only means one thing: your product sucks because not enough people think it is worth paying for in order to keep it alive.

      Google+ seems to be more focused on "information" sharing whereas facebook also caters to entertainment.

    4. Re:No Farmville on Google+ by mattack2 · · Score: 1

      Like.

    5. Re:No Farmville on Google+ by Mia'cova · · Score: 1

      I blocked their apps so long ago I barely even remember what their spam looks like...

    6. Re:No Farmville on Google+ by Anonymous Coward · · Score: 0

      So Zynga can't put Farmville on Google+.

      And nothing of value was lost.

    7. Re:No Farmville on Google+ by Anonymous Coward · · Score: 0

      I have to admit, I don't quite understand this comment. It has been so easy for the past two years to block any "spammy" apps you don't want to hear from. FarmVille isn't my kind of game, but obviously it is to a lot of people, but I never have to hear about it. Google+ might someday be a Facebook replacement for me, but right now, it's just Twitter with a better feature set.

    8. Re:No Farmville on Google+ by Anonymous Coward · · Score: 0

      Don't worry, there's plenty of rumors about a "Google Games" including Zynga.

    9. Re:No Farmville on Google+ by Anonymous Coward · · Score: 0

      So Zynga can't put Farmville on Google+.

      No Farmville on Google+? If there's a better advertisement/reason than this to switch from Facebook to Google+, I don't know what it is

      This is why I'm starting Dev on my eldritch cooking game ... For G+

  8. In all seriousness, WHO GIVES A SHIT? by Anonymous Coward · · Score: 0

    A creator of useless time wasting "games" vs. a glorified classmate search bulletin board. If either of these entities vanished tomorrow, nothing of value would be lost.

    If anything, effort should be expended to extract maximum taxes from them while they exist, considering how they contribute nothing to the betterment of society.

    1. Re:In all seriousness, WHO GIVES A SHIT? by tehcyder · · Score: 1

      If anything, effort should be expended to extract maximum taxes from them while they exist, considering how they contribute nothing to the betterment of society.

      In that case, tax all arms manufacturers 100% of their profit and put the fuckers out of business.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  9. Zynga games, just say no. by gstrickler · · Score: 1

    That's what I do.

    --
    make imaginary.friends COUNT=100 VISIBLE=false
  10. Curious IPO... by sloth+jr · · Score: 2

    ... I'm not sure I recall an IPO where the business was so heavily dependent on a private company. Would you invest in Zynga?

    1. Re:Curious IPO... by Anonymous Coward · · Score: 0

      all tech stocks go to 2 dollars

    2. Re:Curious IPO... by lgarner · · Score: 1

      Nope. But it's been done before.

  11. Re:Speaking on behalf of /. by PeanutButterBreath · · Score: 1

    I've seen forums that are far less geek-elitist than slashdot, talk about facebook as the new AOL.

    Such as? And please link to the posts as well.

    Just go to AOL keyword: Facebook