Zynga accounted for 12 per cent of Facebook’s revenue in 2011, according to the company’s S-1 filing with the Securities and Exchange Commission.That revenue comes from direct advertising purchased by Zynga and also by taking a share of each transaction for a virtual good, according to the filing.
Zynga’s games also generate a significant number of pages where Facebook can place advertisements, according to the filing.
Whether Facebook can maintain that symbiotic relationship with Zynga, which publishes most of its games on Facebook, is listed as a risk factor in the filing:
We currently generate significant revenue as a result of our relationship with Zynga, and, if we are unable to successfully maintain this relationship, our financial results could be harmed.
In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga’s sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga’s apps generate a significant number of pages on which we display ads from other advertisers. If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.