It's official: Zynga
Don't think this means that Zynga will soon have no need for Facebook. The two sites are closely interwoven, and many current activities associated with playing Zynga's games on Facebook will continue, at least for the foreseeable future. For instance, players will use their Facebook login on Zynga.com, and Facebook credits will still be necessary to buy goods on the site.
So what exactly is the purpose of the new platform? Most probably, it represents the first step toward self-reliance. As BusinessWeek notes, the platform was constructed nearly two years ago when contract talks with Facebook became heated. Although the two entities settled up and made nice with a five-year contract, the platform was essentially ready to go when the time was right. Since then, Zynga went public, with its success hampered by investors' doubts about the company's heavy reliance on Facebook. The latter also depends upon Zynga, from which 12% of its revenue is derived.
Zynga.com is an adjunct to Facebook, not a substitute, and it brings its own features to the table. The site will offer a matching service, called "zFriends," which will bring together like-minded gamers more quickly and efficiently than the current friending process on Facebook. Initially, only a handful of games will be available on the site, but more will become available as time goes by. The biggest advantage that the new website offers is that it will be a haven for serious players, without all the distractions of Facebook. Getting that silo or water treatment plant built will be faster and easier than it could ever be while playing on Facebook.
Although Zynga is careful to note that Facebook is still its main source of customers, the step toward independence is clear. CEO Mark Pincus has been working on this project for some time, having invested heavily to wean Zynga off servers previously leased from Internet giant Amazon.com
There seems to be no doubt that the new platform will succeed, and Pincus seems more than happy to give it time. Investors certainly see the move as progress toward independence, evidenced by the rise in Zynga's stock value since its announcement. It is interesting that Pincus should choose this point in time -- shortly before a Facebook IPO and ahead of the debut of online gambling -- to make this move. He is smart to go easy on Facebook, balancing the news with frequent nods to the social site's importance. It may have taken two years to finally be launched, but I wouldn't be surprised if, two years from now, Zynga.com becomes its own popular destination.
As mobile devices become more and more popular, the companies that sell them become more profitable. Find out who they are and why this could be important to your portfolio by grabbing our free report, "3 Hidden Winners of the iPhone, iPad, and Android Revolution."
Fool contributor Amanda Alix owns no shares in the companies mentioned above. The Motley Fool owns shares of Apple and Amazon.com. Motley Fool newsletter services have recommended buying shares of Apple and Amazon.com. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Will Apple Inc.'s Battery Replacement Program Hurt iPhone Sales?
One analyst thinks so.
Apple, Inc.'s $350 Billion Commitment to the U.S. Economy -- What You Need to Know
Apple is bringing back boatloads of cash to the U.S. Here's how it plans to put some of this cash to work.
Relax! Your iPhone 6 Isn't About to Shed 40% of Its Performance
This Fool counters fiction with facts.