NEW YORK (TheStreet) -- Facebook's $5 billion IPO won't just impact its thousands of employees and corporate culture. The effects will be much more far reaching, touching hundreds of companies that rely on the platform -- many of which are already benefiting from buzz surrounding the year's most talked about public offering.
Here are four of them:
1. Zynga (ZNGA)
Social gaming firm Zynga is responsible for 12% of Facebook's revenue through its titles like FarmVille and Mafia Wars. This accounted for roughly $444 million last year, with Facebook's revenue totaling $3.7 billion. Facebook makes money through Zynga by taking a 30% cut of each virtual good transaction, as well as through advertising.There are both risks and rewards to Facebook's relationship with Zynga. The social network's revenue could be adversely affected if Zynga decides not to feature its games on the Facebook platform. Zynga has recently tried to shift from what some have criticized as its over-reliance on Facebook to mobile-based games. Shares of Zynga were rising 15.6% in late morning trading on Thursday to $12.27. 2. Fusion.io (FIO) Enterprise storage company Fusion.io counts Facebook as one of its largest customers. The company's technology powers about 80% of Facebook's servers, and the social network comprised nearly half of its revenue last year. But Fusion.io also warned in its own S-1 filing last year that revenue from Facebook will "decline significantly" during the three months ending June 30, 2011, as the company finishes rolling out its infrastructure. Apple (AAPL) is another large customer for Fusion.io, not surprising considering the company's chief scientist is Apple co-founder Steve Wozniak. Shares of Fusion.io were increasing 0.9% to $22.46 on Thursday. 3. Snap Interactive (STVI) Snap Interactive makes applications for Facebook's platform, such as social dating and location-based programs. Their core data app, called Are You Interested? integrates with a users' Facebook profile, while WhoIsNear is a Foursquare-like geo-location app. The only publicly traded Facebook app developer besides Zynga, Snap recently hired a new CFO in November who is a former exec from Warner Music.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV