Ideal Business Consultants

Farmville may be booming, but the games success hinges precariously in a co-op with Facebook. Zynga—the company behind the social-gaming phenomenon—filed for a $1 billion IPO today, and the language in the document mentions Facebook more than 200 times, points out Fast Company. Its a warning to potential investors that if the relationship sours or if Facebook courts Zynga competitors, the rosy outlook could change.

“We generate substantially all of our revenue and players through the Facebook platform and expect to continue to do so for the foreseeable future,” reads the companys IPO statement. “Any deterioration in our relationship with Facebook would harm our business.” In addition, although the San Francisco startup reports almost $600 million in sales of virtual goods, thats thanks largely to a small group of dedicated players. The statement says, “In order to sustain our revenue levels, we must attract new paying players or increase the amount our players pay.”

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