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Wednesday, February 1, 2012

How Facebook makes money: 85 percent from ads, 12 percent from Zynga


Published on The Verge - All Posts | shared via feedly mobile
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We're digging through Facebook's SEC filing for details on the company in the wake of its IPO announcement and came across this shocker: fully 12 percent of the company's revenue comes from Zynga apps. Facebook makes no bones that it is a risk for the company if Zynga runs into problems:

In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga's sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga's apps generate a significant number of pages on which we display ads from other advertisers. If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing...




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