Facebook, Zynga | featured news

Facebook Inc. and Zynga Inc. are changing the rules of their relationship. In a bid to become less reliant on Facebook, Zynga disclosed in a filing on Thursday that it has amended the terms of its relationship with the world's largest social network so that it can now host its Web games outside of Facebook's platform, among other things. The new agreement also leaves the door open for Facebook to produce its own games and become a direct competitor to Zynga.

Facebook said it has begun placing ads on Zynga's website, another move by the social network to add revenue sources on the heels of its flawed IPO.

Facebook went public just about a month ago, and on Friday the Securities & Exchange Commission released its correspondence with the social network in the months between its initial filing and the May 18 IPO.

This story appears in the May 7 edition of Forbes magazine on page 150. Zynga, Facebook and all use an independent auditor that is simultaneously inventing the rules for social media accounting. Somewhere, Arthur Andersen is shuddering.

We will be looking for any signs of an increase in Zynga's average revenue per user for its new games, which is one of the biggest drivers to its stock value, by our estimates.

Zynga is close to raising as much as $500 million from a group of investors in a round of financing that could value the maker of CityVille, FarmVille and other popular Facebook games as high as $10 billion.

Japanese social games company DeNA is out to take down American rivals Facebook and Zynga.

Facebook and Zynga have just announced a five year partnership and the expansion of use of Facebook Credits in Zynga games.

After months of discord, Zynga and Facebook have made peace--- at least for now.

Ready your virtual cattle and the Microsoft branding iron. Zynga announced today that its hit social game FarmVille on Facebook has now launched on Microsoft's MSN Games portal.