Zynga (ZNGA) -11.1% AH after disclosing it has amended its agreement with Facebook (FB). The...


Zynga (ZNGA) -11.1% AH after disclosing it has amended its agreement with Facebook (FB). The most worrisome line: "Facebook will no longer be prohibited from developing its own games." Facebook has said it's not interested in being a game developer, but as of March 31, 2013, it won't be legally obligated on that count. The amendment also frees Zynga of the obligation to display Facebook ads or use Facebook credits on Zynga.com and other company properties, and of having Facebook be its "exclusive social platform."

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Comments (17)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    Still 2 away from fair value imo
    29 Nov 2012, 05:12 PM Reply Like
  • Lares Capital
    , contributor
    Comments (438) | Send Message
     
    I don't get the market reaction. This is actually good news for ZNGA because now they can enter lucrative online gambling market.

     

    The agreements was obviously mutual so it's not like ZNGA was forced to do it.
    29 Nov 2012, 05:16 PM Reply Like
  • Trongod2000
    , contributor
    Comments (105) | Send Message
     
    I agree, this is good for Zynga. What I don't understand is why FB agreed to release Zynga from the contract they had with them.
    29 Nov 2012, 05:45 PM Reply Like
  • racchole
    , contributor
    Comments (474) | Send Message
     
    Zynga steals most of its game ideas from its competitors. Zynga is in the business of gaming. Ergo, Zynga will fall flat in the face of its competitors without Facbook as a platform to bring its users into its worthless games.

     

    How do you defend Zynga, as a company or investment, and feel good about it?
    29 Nov 2012, 05:53 PM Reply Like
  • Modernist
    , contributor
    Comments (2083) | Send Message
     
    "good artists copy, great artists steal"
    -steve jobs
    29 Nov 2012, 07:36 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4001) | Send Message
     
    I think this is a poor decision on ZNGA part since FB was their foothold into the games. People in general don't care for ZNGA and their market is the people. FB was their only link to their audience. Once ZNGA pulls away from FB, their demise shall follow shortly. There are plenty of game manufacturer apps that people have faith in and ZNGA is not one of them.
    29 Nov 2012, 05:31 PM Reply Like
  • Trongod2000
    , contributor
    Comments (105) | Send Message
     
    Where do you read that Zynga is "pulling away from FB"? This releasing each other from previous restraints is not a full pulling away. It just gives Zynga the ability to not pay FB as much money and to promote their games on their own not just on FB. Seems like a good thing to me. On top of that...Zynga is not the exclusive game developer on FB now and that will not change by this new contract. Zynga still is the most popular game developer on FB and there is not reason that can't continue if Zynga can write good games and continue to expand and update the ones it already has.
    29 Nov 2012, 05:43 PM Reply Like
  • racchole
    , contributor
    Comments (474) | Send Message
     
    Please see the following link:

     

    http://bit.ly/Rm3YSo

     

    Please don't hand your money over to these people.
    29 Nov 2012, 05:59 PM Reply Like
  • surfnspy
    , contributor
    Comments (406) | Send Message
     
    Oh wow! Yikes. Hard to defend those side-by-side comparisons.
    29 Nov 2012, 07:36 PM Reply Like
  • jsIRA
    , contributor
    Comments (4198) | Send Message
     
    Old news.
    29 Nov 2012, 10:46 PM Reply Like
  • marcinz
    , contributor
    Comments (34) | Send Message
     
    " Facebook has said it's not interested in being a game developer "
    Maybe FB will acquire Zynga.
    29 Nov 2012, 05:32 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4001) | Send Message
     
    I don't think FB would be interested in acquiring Zynga since that might infect other assets of FB. Zynga should be disinfected from the inside out or simply destroyed and just started over.
    2 Dec 2012, 04:16 PM Reply Like
  • Sebanightwish
    , contributor
    Comments (1120) | Send Message
     
    I held provided that Zynga is highly dependent on Facebook and that is his fate. The day that Facebook will close its doors there will begin the countdown to the end of Zynga, the market already anticipates a decline of 75% from the IPO
    29 Nov 2012, 05:48 PM Reply Like
  • racchole
    , contributor
    Comments (474) | Send Message
     
    Still time to short it before the countdown reaches 0.00.
    29 Nov 2012, 05:53 PM Reply Like
  • jsIRA
    , contributor
    Comments (4198) | Send Message
     
    nonsense. This kind of comments can only been seen in yahoo board before and now starting to be seen in SA.
    30 Nov 2012, 03:32 AM Reply Like
  • benitus
    , contributor
    Comments (3286) | Send Message
     
    I understand that Zynga is potentially going down but what is the effect on FB's near-term potential? Please educate me, somebody.
    29 Nov 2012, 09:50 PM Reply Like
  • Mustang71
    , contributor
    Comments (7) | Send Message
     
    and facebook never will get into search with cookies, Right?
    30 Nov 2012, 02:55 AM Reply Like
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