Facebook Zynga Faceoff Resolved

According to April 2010 numbers, 122.3 million unique U.S. visitors played Zynga inside of Facebook, and only 18.5 million visited Zynga's website. Indeed, Facebook owns the house -- or platform -- where Zynga has lived and grown astronomically for the past 19 months. While some reports had Facebook and Zynga on the verge of war, reality seemed closer to a pre-nuptial arrangement between a couple already living together and sharing housing expenses which of late had its share of " arguments and debates"

In recent weeks, the two parties were said to be sparring over Facebook’s policy of requiring third-party applications to use the company’s Facebook Credits virtual currency for all transactions conducted on the site. Because Facebook takes a hefty 30% cut of each transaction, Zynga complained and threatened to take all its games off Facebook.

Accordingf to Adage ,Zynga's  gamers bring in an estimated $50 million a month, and the games add up to a hefty third of all active applications on Facebook in terms of audience. No other company comes close to having e-commerce numbers like Zynga's, so a percentage of that   equals a lot of cash for Facebook. 

However The two companies  have signed a deal  five-year deal that essentially keeps Zynga on Facebook for that period. It’s rumored that Zynga accepted Facebook’s 30/70 revenue split, or something closely resembling that share. However it would be unfair to compare Facebok and Zynga in terms of numbers  idn't detail the revenue split in the deal -- the first of its kind between Facebook and a developer -- but analysts say a 30/70 cut is fair and similar to other models in the industry, such as Apple's iTunes.

Going byu the sheer numbers it would be unfair to compare Facebook with Zynga.While Facebook is nearing more than 500 million active users worldwide, and Compete estimated 132 million unique visitors in the US in March 2010. Compare that to Zynga.com’s 20.1 million US visitors the same month, according to Compete.To put it in the simplest terms, Zynga needed Facebook more than Facebook needed Zynga.

According to an estimate from financial researcher Steve Carpenter published in AdAge, Zynga spends approximately $100 million per year on advertising, and this figure amounts to 20% of Facebook’s revenue. Zynga has also driven untold numbers of users to Facebook with its addictive, virally appealing games.