Facebook Inc. (NASDAQ: FB) has started placing ads on Zynga Inc.’s (NASDAQ: ZNGA) website. The move is the latest effort from the social networking giant in last few weeks to add revenue sources following its disappointing initial public offering.
By placing messages on non-Facebook sites, the company is making move toward starting its own advertising network. In fact, Facebook could end up as a potential competitor to Google Inc.’s (NASDAQ: GOOG) AdSense service.
According a Facebook spokeswoman, people may now see ads and sponsored stories from Facebook on Zynga.com.
Facebook and Zynga share a close relationship. The social network currently takes a 30% cut on all revenue Zynga generates from games on Facebook.com. With the latest move, Facebook and Zynga are strengthening their relationship even further.
The move from Facebook as the company continues to face pressure to find additional revenue sources. Since FB’s much-awaited IPO, investors have becoming increasingly circumspect of the company’s growth potential.
In 2011, Facebook had posted revenue of $3.7 billion. A significant portion of this revenue was generated from ads.
Facebook shares have been recovering in the last few days and are inching closer to their IPO price of $38 per share. On Friday, the stock closed 3.80% higher at $33.05 on above average volume of 74.83 million. The stock rose 10.12% this week, despite a drop in the S&P 500.
Zynga shares, meanwhile, ended 4.81% higher at $5.99 on Friday. The stock rose 7.82% for the week.
Recent Comments