What happens when our two favorite online sites have conflicts? Could be tragic or for the better of the sites altogether.
Some may be worried that the Zynga Corporation will be moving on. Here is what a Facebook representative had to say:
We may fail to maintain good relations with Zynga or Zynga may decide to reduce or cease its investments in games on the Facebook Platform.If the use of Zynga games on our Platform declines for these or other reasons, our financial results may be adversely affected. -Facebook
Source was cited from- Forbes
It has come down to with the relationship that most thought was perfect. With the possibility of Zynga going off on its own to create its own gaming platform, what will Facebook have to lose? Well they will lose about 15% of their annual revenue which would be a huge sum when you consider how large Facebook is and how much the worth is. It is about $158Million in total revenue as calculated here in Forbes.
This kind of scenario could worry many investors but it could possibly go both ways. Some would see this as a good thing, others however, see the doom side in it all. Hypothetically speaking, if Zynga were to split from Facebook and move on to their own platform, the investment in that could be endless. There is also the possibility of it being a complete failure. Customers who are loyal to Zynga’s gaming industry could move with them, they could also stray away as the major corporation separates itself. As many of the patronizers have come from Facebook itself due to them trusting the site.
All in all, this could be a major downfall for Zynga or possibly the best decision they could make. Facebook could lose out on a great contributor to their revenue. Will they fix their issues or let it get the best of them?
Do you think that it would be best that the two Companies separate from each other? Would you move with Zynga if they created their own gaming platform? Do you think that Zynga and Facebook should sort out their issues and get back on track? Let us know what you think below!