Who let the dogs out?
At “Zynga Unleashed” on Tuesday, the social gaming company unveiled new games, multiplayer support, improved infrastructure, and a push into mobile. Zynga, which launched July 2007 with a poker game, accounts for nearly 15% of Facebook’s (FB) first quarter revenue, and has more than $1 billion in revenue annually on its own. But lately, Zynga's stock has taken a hit, with investors concerned about negative free cash flow and too much dependence on Facebook.
Its new interactive features, coined “Zynga with Friends”, aims to reduce its reliance on Facebook as a platform and seeks to connect hundreds of millions of its users through multiplayer games. Last Friday, Facebook started running social ads on Zynga.com—opening the door for the social media giant to make the big move of launching an ad network, while creating a new revenue stream for Zynga.
Its new custom-tailored data centre infrastructure, dubbed zCloud, took 80% of its social game servers off Amazon.Com (AMZN) and hosted them on its own private cloud, cutting costs dramatically. Zynga has been heavily criticized for plagiarizing original games, but managed to roll out several additions to its collection, including sims-like The Ville, Chefville, Farmville 2, Bubble Safari, and casino-style Elite Slots. The company also announced that it will make the technology available to third-party game developers through its open third-party platform, adding that it will be collaborating with Atari for a new game.
Zynga (ZNGA : NASDAQ : US$5.77), Net Change: -0.30, % Change: -4.95%, Volume: 59,699,109