Facebook and Zynga Change Relationship Status

Shares of Zynga (NASDAQ:ZNGA) took another plunge, as the social gaming company renegotiated its long-term status with Facebook (NASDAQ:FB), the world’s largest social network.

What Happened?

In an effort to ease the conditions of a deal signed in 2010 and become less dependent on Facebook, Zynga disclosed in a Securities Exchange Filing late Thursday that it will essentially be treated like other app developers. Facebook will no longer require the social gaming company to launch games on Facebook’s platform.

Zynga will also be able to opt out of Facebook Payments as a way for gamers to make purchases, and choose not to display ads produced by Facebook on Zynga.com. The original contract was not set to expire until 2015.

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“Our amended agreement with Facebook continues our long and successful partnership while also allowing us the flexibility to ensure the universal availability of our products and services,” Zynga chief revenue officer Barry Cottle said in a statement.

Painful side effects are being felt on the news…