Facebook and Zynga Strike Deal Over Credits

Social network Facebook and games company Zynga have announced a five-year deal to put an end to their long-running feud.

The two firms have reached an agreement on the issue of the virtual currency, 'Credits', that Facebook has been insisting all developers must use for apps on its site.

In a statement from both companies, Zynga chief executive Mark Pincus and Facebook's chief operating officer, Sheryl Sandberg, said that Zygna would be testing “Facebook Credits in select games and will expand to more titles over the coming months.”

The feud between Facebook and Zygna started when the social networking giant insisted on the inclusion of virtual currencies into games running on the platform, allowing Facebook to earn a percentage from sales, prompting Zygna to consider the possibility of leaving the platform entirely.

Currently how much of a cut Facebook will get from the sales of Zynga games is not known, but similar agreements normally allow the developer to keep 70 per cent of the revenue.