Business Model | Forecast/Sales | News

Zynga Games Are 11% of Facebook’s Revenue

Zynga account for a significant number of FaceBook Credits sold.

APRIL 23, 2012 For the three months ending March 31st, Facebook recorded $1.06 billion in first quarter revenue. More interestingly, virtual item sales from Zynga games, and Zynga advertising, accounted for 11%, or $116.6 million of Facebook’s first-quarter revenue.

Impact: Facebook and Zynga go hand and hand.  No other company comes close in the games on Facebook and Facebook gets 30% of games that use Facebook Credits.  The problem is Zynga is not tending very strong and as Zynga and Facebook both become public companies there is real potential for each of them to pull the other one down.  In short, bad news about Facebook will hurt Zynga and vice versa.  What investors need to be worried about is a chain effect of bad news from the two companies.

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