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- The 2014 Big Picture on Cyber Security
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- Value of Health IT
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- National Cybersecurity Awareness Month
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Shows & Panels
Zynga slides after updated agreement with Facebook
Thursday - 11/29/2012, 6:09pm EST
NEW YORK (AP) - Zynga shares tumbled nearly 12 percent in after-hours trading Thursday after the online game company and Facebook disclosed that they changed their relationship status to become less attached to each other.
Zynga Inc. said in a regulatory filing Thursday that it will no longer have to display Facebook ads or use Facebook payments on its own properties _ such as Zynga.com. In addition Zynga will no longer be required to use Facebook as the exclusive social site for its games, or to grant Facebook exclusive games.
Facebook Inc., which filed a similar disclosure, will also be able to develop its own games after the end of March. Its deal with Zynga previously prohibited that.
The amendments change the companies' 2010 contract that gave Zynga special status among Facebook game developers. San Francisco-based Zynga relies on Facebook for most of the revenue it generates, but the company has been working to establish its independence _ while also maintaining ties with Facebook.
Zynga's titles range from "FarmVille" to "CityVille" to "Words With Friends," the Scrabble-like game made popular on mobile devices.
Zynga shares fell 31 cents, or 11.8 percent, to $2.31 in after-hours trading. The stock closed up 11 cents, or 4.4 percent, at $2.62 in the regular session.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)