This morning brings news, Facebook and Zynga five-year commitment to maintain the social gaming network. As we write this before the deal was recently surprising considering frustrated by Zynga Facebook. This frustration comes from several years ago of limitations in the user messages. But a more significant concern is to encourage Facebook Facebook as a platform for payments only Credit Zynga and others can be used. And obviously, the angle of Credit deal is definitely part of this partnership negotiations.
Zynga problem is that Facebook has a big cost - 30% - for loans (which are standard for all publishers). For Zynga, which is a cash cow for virtual currency and goods, this decrease can reach some serious dough. Years ago, Zynga founder Mark Pincus told The New York Times that direct purchases from the virtual currency and goods will amount to more that most of the $ 100 million in revenue in 2009. Last week. Cake Financial founder and CEO Stephen Carpenter predicted that Zynga is bringing in $ 15 million profit per month, and will stand up to take significant losses from the deduction of 30 percent. Now, with new contracts, Zynga Credit will expand the use of Facebook, a social network virtual currency, for a more game developers in the family '.
Zynga and last debate on Facebook Facebook Credit initiative. Zynga certainly try to negotiate to bring down Facebook and cut in previous negotiations, the thing that had to be heated. Facebook even threatens to shut Zynga game altogether.
Facebook communications director Larry Yu tells us that 30 percent of the cost remained the same for this transaction. But according to sources, Zynga able to win some concessions and the company walked away happy with the deal. These concessions may be made in the form of advertising money, as Zynga is one of the largest advertisers on social networks.
And if Facebook was willing to make concessions to Zynga, what this means for developers and publishers of other games that use Credit? For example, it makes sense for Playdom, publisher of the second most popular game on Facebook, to try to complete the deal as well.
Another angle with a virtual currency agreements is whether Facebook will be able to use the credit on the game from Zynga Facebook platform. Zynga new plan to move from the stage, namely Zynga Live, be sure to play a hand in this. Zynga is not going to comment on any specific credit if Facebook will integrate the platform.
That being said, the virtual currency of survival, Zynga reportedly spending between $ 5 million and $ 8,000,000 per month on Facebook ads. The fact is that Zynga able to play hardball.