Zynga shares slide after ‘renegotiated partnership’ with Facebook
Washington: Zynga’s shares fell nearly 12 percent in after-hours trading after the online game firm and Facebook announced that they changed their relationship status to become less attached to each other.
Zynga shares fell 31 cents, or 11.8 percent, to 2.31dollars in after-hours trading on Thursday.
Zynga said in a regulatory filing on Thursday that it would no longer have to display Facebook ads or use Facebook payments on its own properties like 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, CBS News reports.
According to the report, the amendments change the companies'' 2010 contract that gave Zynga special status among Facebook game developers.
San Francisco-based Zynga, that created popular online games FarmVille and CityVille, relies on Facebook for most of the revenue it generates.
But the company has been working to establish its independence, while also maintaining ties with Facebook, the report said.