Zynga and FB have concluded a deal which is now under wraps
My guess is that Zynga and FB have a deal in which FB provides the platform for RMG and Zynga provides the games - remember, Zynga's gambling apps are now to be found exclusively on FB. Technically, Zynga has in fact abandoned a RMG LICENSE - in favor of FB. FB will apply and hold all gaming licenses, and Zynga will provide the games (David Ko indicated on the CC that Zynga is assigning "top talent" to work on these games, some of which are no doubt staff from the Spooky Cool acquisition). It does make sense to have FB, with much greater resources, to do all the legal work and licensing activities involved in online gaming. Zynga is no doubt prohibited from discussing their deal with FB in any detail. Perhaps FB is in negotiations with other companies/governments in Europe, and wants to keep their deal with Zynga from being disclosed until such time as FB's other negotiations have been concluded. That makes sense if they haven't yet agreed to terms with those other companies/governments; in fact, FB's revenue-sharing deal with Zynga may depend upon the terms of any deals that FB can strike with non-zynga entities. Keeping deals like this quiet happens all the time in corporate America & elsewhere. On the CC, David Ko did say "We love the category. We see that mobile market is growing overall. We are taking steps to rectify that and you’ll hear more from us soon." Let me highlight "YOU'LL HEAR MORE FROM US SOON", and "WE LOVE THE CATEGORY"....Those comments certainly don't indicate to me any interest in abandoning RMG in some form or fashion. Also Don Mattrock's comment that "things will be volatile" suggests to me we have important news coming "soon" (to quote David Ko)....I feel sorry for all those who sold on Thursday afternoon & Friday, but one needs to understand that Zynga, simply cannot - by the terms of their likely deal with FB - discuss Zynga's role with FB in RMG. Even Pincus has said in the past that RMG is a "huge opportuiny for the company". Mattrick,
atunis....I believe your statement is absolutely correct....and there is no speculation here, as the FB/Europe RMG is a done deal....".launching within the month ".....I just posted in another thread .........just did some research....based on recent stats for UK, Italy and spain.....there are 75 million users on FB (and the #'s are growing) let's say 20 % gamble and each person spends at least $20 per year (real conservative numbers) .....that comes to 300 million dollars per year.....then lets say Z's share is 25 %....that comes to 75 million/ yr....that would break even 4 qrt of the Q2 loss......even if it is only 10% ...that is 30 mil and could cover 2 qtrs of loss easy...
ok lee. good to see that you are posting a lot of info. Not disagreeing with anything here, but can you tell me why they didn't factor any of this into guidance? I mean at a minimum the low ball estimates of this revenue should have been included right? Sorry again for the attack yesterday, but when you say done deal, I think you mean CLOSE TO A DONE DEAL so nothing is OFFICIAL YET. If a done deal I have an issue with it not being mentioned.