Business

Editor’s note:  Adam Rifkin is co-founder and CEO of PandaWhale, an online network of interesting things and people. He has never owned Facebook or Zynga shares. . You can follow him @ifindkarma. Facebook and Zynga have experienced similar roller coaster-like devaluation from their peak stock valuations, and they’ve been partners for years, which is why MarkZ and MarkP often get lumped together in the same sentence by fearful investors whose stock is underwater: “Facebook and Zynga (insert analysis here).” Such bundling masks a deeper structural truth. The reasons that the two companies have tanked in the market could not be more divergent, and more indicative of the character and strategic vision of the startups’ respective founders. Forget any analysis that lumps the two companies together, and instead find lessons in Aesop’s fable that are important to every startup founder. Zynga is the Grasshopper in Aesop’s fable, playing and trying to get others to play. The fundamentals of Zy...

Josh Constine is a technology journalist who specializes in deep analysis of social products. He is currently a writer for TechCrunch. Previously, Constine was the Lead Writer of Inside Facebook, where he covered Facebook product changes, privacy, the Ads API, Page management, ecommerce, virtual currency, and music technology. Prior to writing for Inside Facebook, Constine graduated from Stanford University... ? Learn More Divorce, alcoholism, and near worthless stock are the rewards for 12 hour days prepping for a game launch at Zynga, according to one anonymous Quora user who worked there after their company was bought by the gaming giant. The answer was called “butthurt” by one responder. “Sorry you’re not a millionaire after a year of work on a failed product” said another. Indeed it seems a bit overemotional and worth taking with a grain of salt. Long hours and rewards that might not materialize are part of working at startups. Still, the answer has received tons upvotes, includ...

Chris Velazco is a mobile enthusiast and writer who studied English and Marketing at Rutgers University. Once upon a time, he was the news intern for MobileCrunch, and in between posts, he worked in wireless sales at Best Buy. After graduating, he returned to the new TechCrunch to as a full-time mobile writer. He counts advertising, running, musical theater,... ? Learn More Peter Deng was joined on our Facebook Ecosystem CrunchUp stage by Zynga product development VP Sean Kelly, Bump CEO David Lieb, and Xyologic co-founder Matthaus Krzykowski to tackle the prospect of creating and nurturing “modern” mobile applications. One of the juicier tidbits that came to light during the panel came courtesy of Zynga’s Kelly, who noted he believed that the company would make its money back on its multi-million dollar OMGPOP acquisition. “It’s been a good contributor to our numbers,” Kelly said to moderator Kim-Mai Cutler. Fine, it may not be the most shocking revelation considering how vehemently...

Eric Eldon is the Co-Editor of TechCrunch. He was previously the cofounder and editor of Inside Network, where he managed publications including Inside Facebook, Inside Social Games and Inside Mobile Apps. Before that, he spent a couple years covering technology and finance at VentureBeat, a leading Silicon Valley publication where he was the first employee. While Inside Network sold... ? Learn More Mobile usage is upending web empires, as Silicon Valley has come to realize over the last few years. And we’ll have two companies smack in the middle of the shift present at our Facebook Ecosystem CrunchUp this Friday in Redwood City, Calif., sharing how they’re surviving in this new world. Get your CrunchUp tickets here. Zynga, the dominant social game developer on Facebook, has been both building and buying its way into mobile gaming to adapt for this change. It’s had a few wins, like the growth of its “With Friends” franchise, and some losses, like the decline of Draw Something’s traff...

Ryan has spent more than five years covering business, technology, and telecom-related subjects for a variety of publications based in New York and San Francisco. Ryan currently works as a writer for TechCrunch. ? Learn More Here’s another nugget from the release of Facebook’s 10-Q today: Zynga accounted for 14 percent of its revenues in the first six months of 2012, but that number is down from the 19 percent of revenue that Zynga made up in 2011. Revenues that Facebook collects from Zynga include payment processing for purchases made through its social games, advertising that third parties show on its gaming apps, and Facebook ads that appear on Zynga.com. On the first two counts, Facebook is seeing marked declines in its exposure to Zynga’s performance: It reported that payments and direct advertising from Zynga accounted for 10 percent of its revenue in the first half of this year, down from 12 percent for the full year 2011. Display ad revenues from third parties that Facebook r...