Thursday, November 29, 2012

The Future of Zynga after Renegotiating Terms with Facebook

As stated by TechCrunch, Zynga shares went down 12% after changing its partnership conditions with Facebook, ending a buddy-buddy relationship. Read the complete article
 Facebook Zynga Disband
Was it the right move? At first, it seems that the answer is no: it can be inferred that part of its success was tied to Facebook's boom. Wall Street analysts were clearly aligned with this hypothesis. However, this short term stock price downturn can be reversed if Zynga is able to partner with other social networks and further expand its business. This decision could give the gaming company the ability to gain flexibility in an industry in which keeping pace with changes is key to innovation. Only the near future can shed light on the final result.

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