November 30, 2012
Zynga (NASDAQ: ZNGA ) announced yesterday evening the new details of its relationship with Facebook (NASDAQ: FB ) . Zynga has now said that it will have the right to host games outside of the social network, allowing Zynga to potentially become its own completely independent entity. However, the new agreement also opens the door for Facebook to begin producing games of its own, competing with Zynga directly. Motley Fool research analyst Lyons George tells us that so far, Facebook has no official plans to take this approach, but because of the potential of that market, it may be only a matter of time.
Zynga's post-IPO performance has been dreadful, and investors are beginning to wonder if it's "game over" for this newly public company. Being so closely related to the world's largest social network can be a blessing and a curse. You can learn everything you need to know about Zynga and whether it's a buy or a sell in our new premium research report. Don't even think about picking up shares before you read what our top analysts have to say about Zynga. Click here to access your copy.