Zynga slides after updated agreement with Facebook

Published on NewsOK Modified: November 29, 2012 at 6:54 pm •  Published: November 29, 2012
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NEW YORK (AP) — Zynga shares tumbled nearly 13 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.

In a statement, Facebook said it has no plans to compete against Zynga. "We're not in the business of building games and we have no plans to do so," Facebook said. "We're focused on being the platform where games and apps are built."

The company, which is based in Menlo Park, Calif., said it intends to keep working with Zynga, which is based in San Francisco.



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