San Francisco based online video game vendor Zynga's stock surged by nearly 20 per cent on Thursday after one of its key business allies - Facebook filed its initial public offering.
Ever since it teamed up with the social media giant, Zynga has been consistently delivering quality titles such as Mafia Wars, Farm ville, Poker etc. that enjoy massive popularity amongst Facebook enthusiasts from all across the globe.
As a matter of fact, Facebook, in its IPO, mentioned the company's dependence on Zynga as a "risk factor".
Zynga currently boasts over 54 million active users who play at least one of its titles on daily basis. In addition, further 227 million users play at least one title, once every month. An overwhelming proportion of all these users play their games on Facebook though.
While Facebook allows Zynga to host its games on the massively popular social media site with 845 million active users, Zynga gives Facebook 30 per cent of the total amount it earns using that platform.
"If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer," Facebook stated in its IPO, as reported by Time.
With the loss of Zynga, "our financial results may be adversely affected," the social media giant added.