Last night news broke of Zynga scoring a huge new investment of $180 million more dollars… from the same Russian Venture firm, DST, that invested $200 million dollars in Facebook earlier this year.
Conflict of interest, anyone?
It’s one thing when two companies grow a shared market & community, but it’s another thing when when they are becoming bonded at the hip to the expense of what could be an important and broad ecosystem.
This new mutual alignment around the same investor can only have bad effects on the Facebook app ecosystem. Why not a straight acquisition? Too blatantly harmful to the other app developers? What about Zynga spinning off to create entertainment apps using a non Facebook distribution channel; how can they hedge their bet against Facebook when their investors are now ‘all-in’ on the other side?
Granted, Zynga is highly successful but also dead-in-the-water without Facebook, so I understand why DST would be interested in aligning the two. But you’ve got to wonder how the people at Facebook feel about this one.