Facebook and Zynga Revise Terms of Partnership

Nov 30, 2012

Breaking up is hard to do, which may be why Facebook and Zynga have simply opted to "see other people" rather than break off their relationship all together. On November 29, the two companies made regulatory filings that detailed changes to the partnership that has made virtual farming all the rage. In 2010 the companies signed a five year agreement, but they are now cutting it short.

There are a few big changes afoot, for both companies. Facebook is no longer prohibited from developing its own games, which could mean an influx of all manner of new social games from the house that Zuckerberg built - though Facebook says it doesn't plan on building its own games. On the Zynga side of the break-up, the game maker will enjoy a few new freedoms.  Up until now, Facebook has been the only way for gamers to log into their Zynga accounts but with these changes Zynga is free to build its website into a gaming destination. It will also no longer be required to use Facebook ads and payment system on its site - which also means it will no longer have to give Facebook a cut of the revenue.

But the split isn't complete. The new agreement says that Zynga must offer its real-money gambling games on Facebook, at least in countries where it's allowed.

(www.facebook.com, www.zynga.com)