Facebook and Zynga Revise Their Contract

Source Comparison #4

Article 1
"Facebook can make own games after amending Zynga deal"
Nov. 29, 2012
http://www.nbcnews.com/technology/technolog/facebook-can-make-own-games-after-amending-zynga-deal-1C7342306

Article 2
"Facebook and Zynga tear up their contract"
Nov. 29, 2012
http://money.cnn.com/2012/11/29/technology/social/facebook-zynga/index.html

Article 3
"Zynga shares down 6% after Facebook deal amendment"
http://news.cnet.com/8301-1023_3-57556441-93/zynga-shares-down-6-percent-after-facebook-deal-amendment/

• Articles about the modifications made to the contract between Zynga and Facebook initial 5 year deal
• Article 1 describes Facebook as wanting to "level the playing field" and wants to attract other game developers as opposed to the previously favorable treatment given to Zynga 
• Articles 2 and 3 both quote Zynga's Chief Revenue Officer, Barry Cottle, as saying "our amended agreement with Facebook continues our long and successful partnership while also allowing us the flexibility to ensure the universal availability of our products and services"
• Article 3 mentions how badly the changes have affected Zynga's investors and stock
• Some of the modifications made to the agreement include Facebook no longer being prohibited to develop its own games (although it has no plans to) and Zynga launching their own gaming site independent of FB
• Article 1 notes that Zynga caused more than 15% of Facebook's total revenues
• However, article 3 points out that Facebook has contributed 80% to Zynga's revenue
• Although FB claims it is not in the business of gaming, article 2 says that it wants in on Zynga's plan to launch "real money" gambling games
• According to article 1, both companies have wanted to reduce their inter-dependence
• Article 2 states that with the amended contract, Zynga won't be obliged to use FB "as its primary non-Zynga platform"