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Zynga, Inc. Message Board

  • agqorzsl agqorzsl Nov 29, 2012 7:20 PM Flag

    Not so fast... Check this Clause in the New Agreement

    Not so fast... Check this clause in the new agreement:
    -----------------------------
    There’s also a clause regarding real-money games such as virtual poker. Zynga recently signed an agreement with bwin.party in order to move into the real-money poker space in the U.K. In the new agreement it’s stipulated that if Facebook allows real-money games in any country where Zynga already has them, the company founded by Mark Pincus must launch a version on the Facebook platform.
    -----------------------------

    Doesn't this suggest that FB sees real revenue potential for Zynga in real money gaming? In order to launch real money gaming, Zynga needs to develop a better platform suited to it. Facebook is not serious enough for Zynga to be a serious contender in that space. Zynga sought the freedom to develop a platform that will support real revenue.

    This new agreement is all about preparing for real money gaming.

    Facebook granted the new agreement, but only on the condition that Zynga agrees to cut FB in on some of the real revenue coming down the pike, by launching on FB.

    Somebody tell me where my thinking is wrong, if it is. Provide real reasoning, not simpleton assertions that are so often found here. I'm thinking about grabbing shares on the cheap in the morning.

    Sentiment: Hold

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