Zynga Will Pay Facebook 30% Per Transaction – But It's Probably Getting Free Ads

FarmVille-maker Zynga and Facebook just announced a five-year commitment to each other.

Here’s the news that wasn’t in the press release:

  • Sources close to both companies tell us that, like every other developer using Facebook Credits, Zynga will also pay 30% of every transaction to Facebook.
  • Zynga got something out of the deal, too. But nobody on either side will tell us what.
  • We think Facebook comp’d Zynga a boatload of ads, but we can’t get this confirmed.(Probably, Facebook doesn’t want the terms getting out because it would like to not have to give away ad inventory to all its developers.)
  • Free ads for Zynga is kind of a big deal. We’ve heard the company sometimes spends as much as $6 million a day on Facebook Ads when its launching a new game.
  • Giving Zynga free ads (if it is), Facebook is signaling to investors and developers that it isn’t afraid of big, powerful application-makers on its platform.
  • Conversely, by agreeing to pay 30% per transaction, Zynga is admitting that it’s dependent on Facebook’s platform.

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