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Facebook, Zynga Make Up, Do 5-Year Deal

Facebook and Zynga have reportedly reached a five-year deal to keep Zynga games on Facebook, and expand the use of Facebook Credits in Zynga's games, Business Insider reports. "A couple weeks back, it looked like Zynga might leave Facebook and host its games on ZyngaLive.com instead," the media outlet writes. "Zynga was upset because Facebook required it to use Facebook Credits and pay 30% of every transaction -- far more than the 3.5% payments providers charge on the Internet, but about the same Apple charges iPhone App developers."

There was also the issue Facebook limiting the ways in which Zynga could contact its users through Facebook's "notification" system, which effectively forced Zynga to buy more Facebook ads. One industry source tells Business Insider that these platform taxes cut into Zynga's revenues by as much as 50%, while various reports suggested traffic to Zynga's games was fast declining.

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