What is Zynga?

This adds them to be developed social games that they put out on all the large social networks from Facebook to MySpace to be go and also on the iPhone. Basically social games are games that provide context for you to interact with your friends while you're on a social network.

What are some of the titles use on Zynga?

Zynga's most popular game is farmville, but also has games across many popular categories from teams like Mafia wars and vampires where you have a persona and you're building up your empire to other games such as poker and scramble.

How does Zynga make money? Zynga has three revenue streams, first and vast majority of revenues comes directly from users paying and they have now said that that is north of 80% of the revenue. Most people are not paying for anything through the games but about 3% to purchase things that are meaningful within their gain. Second is different forms of advertising such as offer networks to large percentage of the revenues that comes through them is also direct user pay issues forms that Zynga doesn't support such as Zong or Amazon payment so that's a piece right there that's a form of direct user pay.

Because there is a revenue share for Zyznga with Amazon will take a processing fee and the offered network that made it available to the users will have a fee for doing that. In the final from time to time we will have display ads or pay per click links and stuff like that.

Some offer networks are sleazy come on's that don't do anything good for the users and Xanga has been writing about this for some time and has been in a reactionary mode for a long time long before the industry posts on this Zynga was policing officers and using customer complaints and then taking them down. This was not working and we couldn't Zynga could not stay ahead of it. Facebook has since changed their policy and said they were to have a zero tolerance policy and there shouldn't be any offers ever offered to users. Same degree but that change and are already working with them on that and soon realized the only way they could live up to that was flip the whole thing around and only show offers that they have prescreened. So rather than having thousands of offers every week they were only given offer a couple dozen offers at most and then a slow basis go through the offers themselves and approve.

At the end of the day offer networks are very small portion of Zynga's revenue stream less than 20%, so removing the majority of the offers that were available on Zynga is certainly not to hurt their bottom line.