Zynga has come to a new agreement with Facebook, which means Facebook will being developing its own games next year.
The news caused Zynga's already anemic stock to suddenly flatline, according to Fortune. The agreement, filed with the SEC, means that Facebook will be allowed to develop its own games, and Zynga must launch any real-money games in any country it must launch them also on Facebook.
Zynga's stock, which has dropped 70 percent since its IPO last year, fell to $2.27 per share after the news. The stock did climb back a little to $2.64 on Friday.
U.S. & World
The New York Posts faults Zynga chief executive Mark Pincus and his handling of his teetering company. Already there have been extensive layoffs and vice president Roy Sehgal and general manager Steve Schreck left the company.
Since Zynga's success until recently was so intertwined with Facebook, it's not hard to see why the news would greatly affect Zynga's profitability. It no longer has exclusivity with Facebook and now its major competitor will be --- Facebook. We don't think any company wants to take them on, right?