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Wednesday, 8 February 2012

New Facebook Filings Reveal Details of its Relationship With Zynga

By at Mashable: 
Facebook just amended its S-1 filings with the Securities and Exchange Commission (SEC) and the documents offer deeper insight into Facebook’s relationship with Zynga.
Facebook amended or added 26 new documents to its SEC filing and these updated documents provide more color on Facebook’s stock allotment and its relationships with other companies.
As first reported by Business Insider, that includes a more detailed look at how Facebook and Zynga work together.
In original IPO filing, it was revealed that Zynga accounts for 12% of Facebook’s revenue. That news was enough to lift Zynga’s stock and made clear that the relationships is symbiotic.
The amended filings include a Developer Addendum effective as of May 14, 2010 that discloses the developer relationship between the two companies.
The documents says, in part:
The parties acknowledge that FB desires to enable Zynga to build the Zynga Platform on top of the Facebook Platform, and the parties desire to, amongst other goals set forth herein, work together to increase the number of users of each party’s products and services.
The parties further acknowledge that Zynga is making a significant commitment to the Facebook Platform (i.e., using Facebook as the exclusive Social Platform on the Zynga Properties and granting FB certain title exclusivities to Zynga games on the Facebook Platform). In exchange for such commitment, the parties have committed to set certain growth targets for monthly unique users of Covered Zynga Games.
In essence, what this agreement says is that in exchange for building atop Facebook’s platform, Zynga got Facebook’s assurance that it would meet certain growth targets.
Those growth targets are based on a linear weekly growth rate for web and mobile. In exchange for meeting these targets, Zynga promised exclusivity of its titles on the Facebook Platform and promised exclusive mobile integration.
There are more documents in the new filing that also look interesting and we’ll be following the wider story as it develops.

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