Facebook updates IPO filing to underline Zynga deal

Facebook has amended its initial public offering (IPO) filing to detail its partnership with Zynga. 12 percent of Facebook's revenue comes from Zynga, so the deal requires a little bit more information.

Facebook has just updated its filing for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) to underline its deal with Zynga. When I looked at Facebook's numbers, I noted that a whopping "12 percent of Facebook's revenue comes from Zynga, including both payments revenue and advertising that is displayed alongside Zynga games."

Here's what's in today's update (notice the last sentence):

The parties acknowledge that FB desires to enable Zynga to build the Zynga Platform on top of the Facebook Platform, and the parties desire to, amongst other goals set forth herein, work together to increase the number of users of each party’s products and services. [*] The parties further acknowledge that Zynga is making a significant commitment to the Facebook Platform (i.e., using Facebook as the exclusive Social Platform on the Zynga Properties and granting FB certain title exclusivities to Zynga games on the Facebook Platform). In exchange for such commitment, [*] the parties have committed to set certain growth targets for monthly unique users of Covered Zynga Games.

Here are some other interesting tidbits:

  • [Facebook] "shall not offer or otherwise make available on the Facebook Site or the Facebook Platform any Facebook Game. Zynga may terminate this Addendum No. 2 if, at any time during the Term, FB offers or otherwise makes a Facebook Game available on the Facebook Site or the Facebook Platform (except for non-production servers and other internal development and beta testing environments); provided, however, that Zynga will provide FB with notice if it reasonably believes FB is in breach of this Section 3.4, and FB will not be in breach of this Addendum No. 2 if it ceases to distribute such Facebook Game within fourteen (14) days after receipt of such notice."
  • [Zynga is] "solely responsible for the Properties, including all content and materials, maintenance and operation thereof and the proper implementation of our specifications. [Zynga is] not responsible for anything related to Properties except for the serving of Content that appears in the Facebook Ad Units implemented on such Properties."
  • [Zynga acknowledges and agrees] "that Facebook Credits will be the sole and exclusive Payment Method that is used, accepted or otherwise made available on or in connection with all Covered Zynga Services during the Term."

Facebook filed for a $5 billion IPO exactly a week ago. Here's the original filing: Form S-1 REGISTRATION STATEMENT. Here's the update: Amendment No. 1 to Form S-1 REGISTRATION STATEMENT. You may also want to see Developer Addendum and Developer Addendum No. 2, which are the same two developer agreement documents filed in Zynga's own S-1 amendment four months ago; they even have the same redactions.

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