NTELOS Holdings Corp.(NASDAQ:NTLS) is tumbling 23% after research firm FBR predicted that the company's partnership with Sprint Nextel Corporation(NYSE:S) would not be renewed when the deal expires in 2015. FBR, which noted that NTELOS obtains the majority of its profits from its partnership with the carrier through the Sprint Strategic Network Alliance, downgraded NTELOS to Underperform from Market Perform this morning in a note to investors. Moreover, FBR slashed its price target on NTELOS to $5 from $21, and predicted that the company would not be able to sustain its dividend if the alliance isn't renewed.
Zynga Inc(NASDAQ:ZNGA) and Facebook Inc(NASDAQ:FB) have reworked their contract to reduce the intensity of their relationship that.
In regulatory filings on Thursday both companies disclosed that they would no longer be required to place ads on each other's properties.
Zynga also said that it will no longer be required to use Facebook as the exclusive social site for its games or grant it exclusive games.
Facebook, while making similar disclosures also added that it can develop its own games after March next year. Its contract with Zynga prohibited it from doing that.
"In addition, effective on March 31, 2013, certain provisions related to web and mobile growth targets and schedules will no longer be applicable and Facebook will no longer be prohibited from developing its own games. Further, Zynga's right to cross-promote between games on the Facebook web site will be governed by Facebook's standard terms of service," the filing said.
Facebook however was quick to point out that it did not intend to compete with Zynga in its own turf.
"We're not in the business of building games and we have no plans to do so," the statement said. "We're focused on being the platform where games and apps are built."
This will come as a relief not only for Zynga but also for all the other game-makers who are thriving on the Facebook platform.
Of course, so far as Zynga is concerned this is seen as bad news for the stock, coming as it does at a time when the company is seeing an exodus of its top people.
Wall Street has also not taken kindly to the fact that under the new contract Zynga will no longer be able to "cross-promote" its games on Facebook.
Shares of ZNGA tumbled 6.50% and FB down 1%.