Facebook eyes cut of virtual bonanza

Bloomberg

27 Jul, 2011 05:30 PM2 mins to read

Facebook is in private talks to let developers sell virtual goods within mobile web browsers, part of an effort to generate more revenue from smartphones and tablet computers.

The change would let developers use Facebook's currency, called Credits, on mobile applications accessed over the Web, according to sources.

That means Facebook could get about 30 per cent of revenue generated by the sale of virtual goods.

Right now, that commission typically goes to Apple or Google because they run the operating systems for phones.

The discussions are part of Facebook's efforts to revamp its mobile strategy, helping the company take advantage of the shift to smartphones and apps.

Facebook is one of the most popular mobile apps on Apple's iPhone and Google's Android, though it makes no revenue from the programs.

California-based Facebook declined to comment on any plans for mobile Credits.

Developers of Facebook apps make money when users buy virtual items within their programs - say, a pony in Zynga's FarmVille.

When customers make those purchases using Facebook on a computer, the company gets its cut.

When it happens within the apps of Apple or Google, Facebook doesn't.

Facebook, which has more than 750 million users, makes most of its money from ads.

It's likely to generate more than US$2 billion ($2.2 billion) this year in earnings before interest, taxes, depreciation and amortisation, a source said.