Zynga shares plummet after changing its relationship with Facebook
Yesterday’s announcement of Facebook and the change in their relationship with Zynga ended definitely affect him directly to the company of the games beyond this change allows it to expand to other platforms in the future. And after the announcement, Zynga’s shares ended lower in the stock market, falling to 7% yesterday.
On paper, this fall in its share price means that in the eyes of investors Zynga is not as valuable by itself, beyond the change in the contract that Facebook and Zynga had previously been made to limit the dependence towards each other (and vice versa). However, that seems to have the most complicated way to rebound now is definitely the creator of FarmVille house.
Apparently this situation came as a surprise to anyone, least of Zynga people are clear that while they need to expand, probably the two most needed was another. Now, one of his priorities will be to expand into mobile, in addition to launching some kind casino games where real money can be used as a bargaining chip, something that until now was limited to Facebook Credits.
One thing is clear: While Zynga was the main partner of Facebook a few years ago, things changed a lot during the last hour. And even more so with the entry of a number of participants, including some associated companies to big productions (like EA), making his debut in the segment of social games and quite successfully.
Link: Zynga Stock Dives as Facebook Keeps Backing Away (Wired)Tags: Actions, Facebook, games, market value, Zynga