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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.

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Avatar for 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.

15 Responses

  1. Avatar for general link directory general link directory says:

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

  2. Avatar for Deric Deric says:

    Facebook will live without Zynga. The question is, can Zynga do it without Facebook? I don’t think so.

  3. Avatar for Craig Freestone Craig Freestone says:

    Hatching A New Social Media Marketing Book…

  4. Avatar for Jon Jon says:

    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.

  5. Avatar for ligrev ligrev says:

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

    -Sent via YugaTech Mobile App

  6. Avatar for loadex loadex says:

    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.

  7. Avatar for Anony Anony says:

    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.

  8. Avatar for astig astig says:

    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.

  9. Avatar for Onynz Onynz says:

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

  10. Avatar for lolipown lolipown says:

    ^
    isn’t it the other way around?

  11. Avatar for daddy joey daddy joey says:

    zynga is one of the reasons behind FB’s success

  12. Avatar for simplynice93 simplynice93 says:

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

  13. Avatar for Calvin Calvin says:

    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.

  14. Avatar for Carlo Carlo says:

    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.

  15. Avatar for wh@â„¢ wh@â„¢ says:

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

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