Zynga shares slide after privileged status with Facebook ends

(Reuters) - Shares of gaming company Zynga Inc fell as much as 10 percent, a day after the "Farmville" creator reached an agreement with Facebook Inc that reduces its dependence on the social networking giant.

The companies reported in regulatory filings on Thursday that they have reached an agreement to amend a 2010 deal that was widely seen as giving Zynga privileged status on the world's No.1 social network.

Zynga gets a freer hand to operate a standalone gaming website, but gives up its ability to promote its site on Facebook and to draw from the thriving social network of about 1 billion users.

"Although Zynga investors have reacted negatively to Thursday's announcements so far, we view them as a long-term positive for both companies," Wedbush Securities analyst Michael Pachter said in a note to clients.

"Zynga now has an advantage to offer more payment options which could result in additional subscribers who are not Facebook users," he said, maintaining his "outperform" rating and price target of $4 on the stock.

Both internet companies have been trying to reduce their interdependence, with Zynga starting up its own Zynga.com platform, and Facebook wooing other games developers.

In recent quarters, fees from Zynga contributed 15 percent of Facebook's revenue, while Zynga relies on Facebook for roughly 80 percent of its revenue.

Francisco-based Zynga's shares were down 7 percent at $2.44 in morning trading on the New York Stock Exchange on Friday.

Facebook shares were down more than 1 percent at $26.98.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Don Sebastian)

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Letterman up for jabs with Kennedy Center Honors

WASHINGTON (AP) — David Letterman's "stupid human tricks" and Top 10 lists are being vaulted into the ranks of cultural acclaim as the late-night comedian receives this year's Kennedy Center Honors with rock band Led Zeppelin and three other artists.

Stars from New York, Hollywood and the music world gathered Sunday in Washington to salute the comedian and the band, along with Dustin Hoffman, Chicago bluesman Buddy Guy and ballerina Natalia Makarova.

The honors are the nation's highest award for those who influenced American culture through the arts. President Barack Obama will host the honorees at the White House before they are saluted by fellow performers in a show to be broadcast Dec. 26 on CBS.

Meryl Streep introduced the honorees Saturday during a dinner at the U.S. State Department and noted Letterman had surpassed his mentor, Johnny Carson, in sustaining the longest late-night television career for more than 30 years.

Stephen Colbert and Jimmy Kimmel joined in celebrating his influence on many other comedians.

"I knew Johnny, and I loved Johnny. Johnny was beyond reproach," Colbert said in a toast to Letterman. "Dave was stupid. Dave was ours. Dave was like us.

"We wanted to throw things off of buildings. ... We would love to stick our heads out the window of 30 Rock and yell at passers-by, 'I'm not wearing any pants!'"

Colbert marveled at Letterman receiving such an award after he "corrupted the minds of a generation."

Paul Shaffer, Letterman's longtime band leader, said he knew his boss was uncomfortable hearing such accolades, but that he was also enjoying every second of it.

Big names from the rock world dressed in black tie for the occasion to honor their heroes in Led Zeppelin as a string ensemble played "Kashmir" and other tunes at the State Department.

Foo Fighters singer Dave Grohl said he never took any music lessons when he was starting out because "my teachers were Led Zeppelin. ... They were the most powerful thing in my life."

Lenny Kravitz said their music was special and became a lasting part of the culture of rock and roll.

"It's very difficult," he said. "You get four guys that come together and make something so much more powerful than they all are."

Zeppelin front man Robert Plant said he was flattered and overwhelmed in receiving the American culture prize. He said he was glad to see his former band mates, John Paul Jones and Jimmy Page, using good table manners.

The trio is scheduled to appear Monday on CBS' "Late Show with David Letterman." They are often asked if they'll reunite.

Plant told The Associated Press he plans to continue traveling the world and wants to make new music along the way.

"If anybody wants to write some new songs, I'm game to write songs," he said.

Hoffman was honored for charting his own path after taking a junior college class in acting that "nobody ever flunks." Streep said it became a pilgrimage with Hoffman waiting tables and typing for the yellow pages.

"He'd do anything if it meant at night he could find himself on the stage," she said.

Glenn Close toasted him for defining the character actor as leading man and as an artist who insisted on setting the highest standards for himself.

President Bill Clinton saluted Guy, the Chicago bluesman who was born into a family of sharecroppers with no electricity or running water in Louisiana. He went on to pioneer the use of distortion and feedback with his electric guitar.

"Buddy Guy's life is a miracle," Clinton said. "Just imagine you want to be a guitar player and you get your first strings by tearing off the screen door. ... He came from that to this."

Secretary of State Hillary Rodham Clinton said the ballerina Makarova "risked everything to have the freedom to dance the way she wanted to dance" when she defected from the Soviet Union in 1970.

Makarova quickly made her debut with the American Ballet Theatre and later was the first exiled artist to return to the Soviet Union before its fall to dance with the Kirov Ballet.

Clinton also took special note of Letterman, saying he must be wondering what he's doing in a crowd of talented artists and musicians.

"Dave and I have a history," she said. "I have been a guest on his show several times, and if you include references to my pant suits, I'm on at least once a week."

The crowd of artists and entertainers gave Clinton a standing ovation as she hosted her final salute to the nation's artists as secretary of State.

Kennedy Center Chairman David Rubenstein gave her a subtle nudge to run for president in 2016, saying there's another room at the State Department to name after a secretary who later becomes president.

___

Follow Brett Zongker on Twitter at https://twitter.com/DCArtBeat

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Opinion: A Health Insurance Detective Story

I’VE had a long career as a business journalist, beginning at Forbes and including eight years as the editor of Money, a personal finance magazine. But I’ve never faced a more confounding reporting challenge than the one I’m engaged in now: What will I pay next year for the pill that controls my blood cancer?

After making more than 70 phone calls to 16 organizations over the past few weeks, I’m still not totally sure what I will owe for my Revlimid, a derivative of thalidomide that is keeping my multiple myeloma in check. The drug is extremely expensive — about $11,000 retail for a four-week supply, $132,000 a year, $524 a pill. Time Warner, my former employer, has covered me for years under its Supplementary Medicare Program, a plan for retirees that included a special Writers Guild benefit capping my out-of-pocket prescription costs at $1,000 a year. That out-of-pocket limit is scheduled to expire on Jan. 1. So what will my Revlimid cost me next year?

The answers I got ranged from $20 a month to $17,000 a year. One of the first people I phoned said that no matter what I heard, I wouldn’t know the cost until I filed a claim in January. Seventy phone calls later, that may still be the most reliable thing anyone has told me.

Like around 47 million other Medicare beneficiaries, I have until this Friday, Dec. 7, when open enrollment ends, to choose my 2013 Medicare coverage, either through traditional Medicare or a private insurer, as well as my drug coverage — or I will risk all sorts of complications and potential late penalties.

But if a seasoned personal-finance journalist can’t get a straight answer to a simple question, what chance do most people have of picking the right health insurance option?

A study published in the journal Health Affairs in October estimated that a mere 5.2 percent of Medicare Part D beneficiaries chose the cheapest coverage that met their needs. All in all, consumers appear to be wasting roughly $11 billion a year on their Part D coverage, partly, I think, because they don’t get reliable answers to straightforward questions.

Here’s a snapshot of my surreal experience:

NOV. 7 A packet from Time Warner informs me that the company’s new 2013 Retiree Health Care Plan has “no out-of-pocket limit on your expenses.” But Erin, the person who answers at the company’s Benefits Service Center, tells me that the new plan will have “no practical effect” on me. What about the $1,000-a-year cap on drug costs? Is that really being eliminated? “Yes,” she says, “there’s no limit on out-of-pocket expenses in 2013.” I tell her I think that could have a major effect on me.

Next I talk to David at CVS/Caremark, Time Warner’s new drug insurance provider. He thinks my out-of-pocket cost for Revlimid next year will be $6,900. He says, “I know I’m scaring you.”

I call back Erin at Time Warner. She mentions something about $10,000 and says she’ll get an estimate for me in two business days.

NOV. 8 I phone Medicare. Jay says that if I switch to Medicare’s Part D prescription coverage, with a new provider, Revlimid’s cost will drive me into Medicare’s “catastrophic coverage.” I’d pay $2,819 the first month, and 5 percent of the cost of the drug thereafter — $563 a month or maybe $561. Anyway, roughly $9,000 for the year. Jay says AARP’s Part D plan may be a good option.

NOV. 9 Erin at Time Warner tells me that the company’s policy bundles United Healthcare medical coverage with CVS/Caremark’s drug coverage. I can’t accept the medical plan and cherry-pick prescription coverage elsewhere. It’s take it or leave it. Then she puts CVS’s Michele on the line to get me a Revlimid quote. Michele says Time Warner hasn’t transferred my insurance information. She can’t give me a quote without it. Erin says she will not call me with an update. I’ll have to call her.

My oncologist’s assistant steers me to Celgene, Revlimid’s manufacturer. Jennifer in “patient support” says premium assistance grants can cut the cost of Revlimid to $20 or $30 a month. She says, “You’re going to be O.K.” If my income is low enough to qualify for assistance.

NOV. 12 I try CVS again. Christine says my insurance records still have not been transferred, but she thinks my Revlimid might cost $17,000 a year.

Adriana at Medicare warns me that AARP and other Part D providers will require “prior authorization” to cover my Revlimid, so it’s probably best to stick with Time Warner no matter what the cost.

But Brooke at AARP insists that I don’t need prior authorization for my Revlimid, and so does her supervisor Brian — until he spots a footnote. Then he assures me that it will be easy to get prior authorization. All I need is a doctor’s note. My out-of-pocket cost for 2013: roughly $7,000.

NOV. 13 Linda at CVS says her company still doesn’t have my file, but from what she can see about Time Warner’s insurance plans my cost will be $60 a month — $720 for the year.

CVS assigns my case to Rebecca. She says she’s “sure all will be fine.” Well, “pretty sure.” She’s excited. She’s been with the company only a few months. This will be her first quote.

NOV. 14 Giddens at Time Warner puts in an “emergency update request” to get my files transferred to CVS.

Frank Lalli is an editorial consultant on retirement issues and a former senior executive editor at Time Warner’s Time Inc.

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John McAfee Plays Hide-and-Seek in Belize

Photo Illustration by The New York Times

John McAfee, right, a pioneer in computer security who lives in Belize, is a “person of interest” in the murder of his neighbor. More Photos »

DANIEL GUERRERO promised during his campaign for mayor here to clean up San Pedro, the only town on this island, a 20-minute puddle jump from the mainland. But if he ever runs for re-election, don’t expect him to mention that vow.

“I meant clean up the trash, the traffic, that sort of thing,” he says. “I didn’t mean this.”

“This” is a full-blown international media frenzy and the kind of mess that no politician could have seen coming. It started on Nov. 11, the morning that Gregory Faull, a 52-year-old American, was found dead, lying face up in a pool of blood in his home. He had been shot in the head. His laptop and iPhone were missing. A 9-millimeter shell was found nearby.

What happened next turned this from a local crime story to worldwide news: The police announced that a “person of interest” in the investigation was a neighbor, John McAfee, a Silicon Valley legend who years ago earned millions from the computer virus-fighting software company that still bears his name.

A priapic 67-year-old, with an improbable mop of blond-highlighted hair and a rotating group of young girlfriends, Mr. McAfee quickly melted into the island’s lush green forest. Then, for Belizean authorities, the real embarrassment began.

Asserting his innocence, Mr. McAfee became a multiplatform cyberdissident, with a Twitter account, and a blog at whoismcafee.com with audio links, a comments section, photographs and a stream of invective against the government and the police of Belize. He has done interviews on podcasts, like the “Joe Rogan Experience,” and offered a $25,000 reward for information leading to the arrest of “the person or persons” who killed Mr. Faull. He has turned lamming it into a kind of high-tech performance art.

“I am asking all people of conscience to read this blog, especially the links in the ‘Background’ section,’ and see the ugly truth unfolding here,” he posted on Nov. 18. “Speak out. Write your congressmen. Write the prime minister. Do what you can.”

Before he went underground, Mr. McAfee led a noisy, opulent and increasingly stressful life here. He was known for the retinue of prostitutes who he says moved in and out of his house, and for employing armed guards, some of whom stood watch on the beach abutting his house. He also kept a pack of untethered dogs on his property who barked at and sometimes bit passers-by.

Two days before the murder, someone had poisoned a handful of those dogs. As it happens, Mr. Faull had complained about the animals, as well as the guards and the constant late-night inflow and outflow of taxis on the dirt path that runs behind his and Mr. McAfee’s homes — a path so tiny that it’s supposed to be off-limits to cars.

Mr. Faull had shown up at the town council office a few weeks ago with a letter decrying the din and the dogs, as well as Mr. McAfee’s guns and behavior. Nothing came of it.

“We were planning to meet with John McAfee and hand him the letter,” Mr. Guerrero said. “But it never happened. We were busy doing other work.”

In hindsight, that looks like a blunder. Mr. McAfee has since said on his blog that he had no choice but to flee because police and politicians in Belize are corrupt and eager to kill him. As proof, he has written at length about a late April raid that the country’s Gang Suppression Unit conducted at a property of his on the mainland, in a district called Orange Walk.

Some McAfee watchers have a different theory — namely, that he grew paranoid and perhaps psychotic after months of experimenting with and consuming MDPV, a psychoactive drug. These experiments were described in detail by Mr. McAfee himself, under the pseudonym “Stuffmonger” in a forum on Bluelight, a Web site popular with drug hobbyists.

So, here’s one hypothesis: Rich man doses himself to madness while seeking sexual bliss through pharmacology. Then shoots neighbor in a rage. Case closed, right? Ah, but those Bluelight posts were a ruse, Mr. McAfee would later blog, just one of the many pranks he has perpetrated over the years — part of a bet with a friend to see if he could create Bluelight’s largest-ever thread.

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Sudhir Venkatesh, Columbia’s Gang Scholar, Lives on the Edge

Christopher Capozziello for The New York Times

Sudhir Venkatesh, at a lecture last month, was audited over expenditures at Columbia University, where he briefly led a research center.

FROM his earliest days as a graduate student, Sudhir Venkatesh did things differently. He came to sociology by way of math, not by the social sciences. He was an Indian-American Deadhead from Southern California who wore a ponytail and tie-dyed shirts. He stuck out.

Today, he is a celebrity in an otherwise low-key academic field — a star on campus, an influential public intellectual, a sought-after speaker. The hardcover of his best-selling book, “Gang Leader for a Day: A Rogue Sociologist Takes to the Streets,” released in 2008, features a full-length photo of him looking tough in jeans and a leather jacket, its collar turned up.

Through his research on gang life and prostitutes, he has succeeded against long odds in making sociology seem hip. And by writing in magazines, being featured in the book “Freakonomics,” and even appearing on late-night television, he has succeeded in bringing that research out of the academy and into the public realm.

But fame has brought controversy. Some of his peers say that in search of a broader readership he takes liberties not appropriate for a scholar: sensationalizing his experiences, exaggerating the reliability of his memory and, in one case, physically assaulting someone. Others who might not have attracted mainstream attention say he steps too eagerly into the spotlight.

And at Columbia, where he briefly led the university’s largest social science research center, he was the subject last year of a grueling investigation into a quarter-million dollars of spending that Columbia auditors said was insufficiently documented, misappropriated or outright fabricated.

According to internal documents from that investigation, which were obtained by The New York Times, the auditors said that Professor Venkatesh directed $52,328 to someone without any “documented evidence of work performed.” He listed a dinner for 25 people, relating to research on professional baseball players; auditors found that only 8 people had attended, and that the research project had not been approved.

He charged Columbia for town cars to take him around, to take his fiancée home from work one late night, to take someone — it is not specified whom — from Professor Venkatesh’s address to a building that houses a nail salon and a psychic. All told, auditors questioned expenses amounting to $241,364.83.

The documents do not indicate what judgment Columbia administrators reached about the audit, or what actions, if any, they took as a result. Professor Venkatesh said in a brief phone conversation in October that he had repaid $13,000.

He is no longer affiliated with the Institute for Social and Economic Research and Policy, or Iserp. Still a tenured professor, he is now a member of the university’s Committee on Global Thought. This semester, he has been on parental leave with a new baby, while visiting at the Institute for Public Knowledge at New York University.

During that brief interview, Professor Venkatesh said he was proud of his record at Iserp: “I answered all their questions, I’m doing my research, I have a new appointment at the university that I’m very excited about. I just don’t want to get into these details.”

Columbia also declined to discuss the investigation. “We do not comment on personnel matters, but we can confirm that Professor Venkatesh is a faculty member,” a spokesman for the university said.

That discretion is common among prestigious schools, but Anne D. Neal, president of the American Council of Trustees and Alumni, an organization that focuses on accountability in higher education, said it was hazardous. “The university should always err on the side of transparency and being open,” she said. “Without knowing all the facts here, if Columbia wants to maintain donor and public trust, it shouldn’t hide the investigation or the findings.”

BORN in India and raised in an upper-middle-class suburb in California, Sudhir Venkatesh earned a bachelor’s degree in mathematics from the University of California at San Diego, then pursued graduate studies at the University of Chicago, where he encountered one of the great pillars in American academia: the Chicago school of sociology.

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Zynga shares slide after privileged status with Facebook ends

(Reuters) - Shares of gaming company Zynga Inc fell as much as 10 percent, a day after the "Farmville" creator reached an agreement with Facebook Inc that reduces its dependence on the social networking giant.

The companies reported in regulatory filings on Thursday that they have reached an agreement to amend a 2010 deal that was widely seen as giving Zynga privileged status on the world's No.1 social network.

Zynga gets a freer hand to operate a standalone gaming website, but gives up its ability to promote its site on Facebook and to draw from the thriving social network of about 1 billion users.

"Although Zynga investors have reacted negatively to Thursday's announcements so far, we view them as a long-term positive for both companies," Wedbush Securities analyst Michael Pachter said in a note to clients.

"Zynga now has an advantage to offer more payment options which could result in additional subscribers who are not Facebook users," he said, maintaining his "outperform" rating and price target of $4 on the stock.

Both internet companies have been trying to reduce their interdependence, with Zynga starting up its own Zynga.com platform, and Facebook wooing other games developers.

In recent quarters, fees from Zynga contributed 15 percent of Facebook's revenue, while Zynga relies on Facebook for roughly 80 percent of its revenue.

Francisco-based Zynga's shares were down 7 percent at $2.44 in morning trading on the New York Stock Exchange on Friday.

Facebook shares were down more than 1 percent at $26.98.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Don Sebastian)

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JLo tones down concert in Indonesia

JAKARTA, Indonesia (AP) — Jennifer Lopez wowed thousands of fans in Indonesia, but they didn't see as much of her as concertgoers in other countries — the American pop star toned down both her sexy outfits and her dance moves during her show in the world's most populous Muslim country, promoters said Saturday.

Lopez's "Dance Again World Tour" was performed in the country's capital, Jakarta, on Friday in line with promises Lopez made to make her show more appropriate for the audience, said Chairi Ibrahim from Dyandra Entertainment, the concert promoter.

"JLo was very cooperative ... she respected our culture," Ibrahim said, adding that Lopez's managers also asked whether she could perform her usual sexy dance moves, but were told that "making love" moves were not appropriate for Indonesia.

"Yes, she dressed modestly ... she's still sexy, attractive and tantalizing, though," said Ira Wibowo, an Indonesian actress who was among more than 7,000 fans at the concert.

Another fan, Doddy Adityawarman, was a bit disappointed with the changes.

"She should appear just the way she is," he said, "Many local artists dress even much sexy, much worse."

Lopez changed several times during her 90-minute concert along with several dancers, who also dressed modestly without revealing their chests or cleavage.

Most Muslims in Indonesia, a secular country of 240 million people, are moderate. But a small extremist fringe has become more vocal in recent years.

They have pushed through controversial laws — including an anti-pornography bill — and have been known to attack anything perceived as blasphemous, from transvestites and bars to "deviant" religious sects.

Lady Gaga was forced to cancel her sold-out show in Indonesia in May following threats by Islamic hard-liners, who called her a "devil worshipper."

Lopez will also perform in Muslim-majority Malaysia on Sunday.

"Thank you Jakarta for an amazing night," the 43-year-old diva tweeted to her 13 million followers Saturday.

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Media Decoder Blog: Robert Thomson to Be Chief of News Corporation's New Publishing Company

Robert Thomson, the top editor at The Wall Street Journal and Dow Jones and a confidante of News Corporation’s chairman and chief executive, Rupert Murdoch, is expected to be named chief executive of the media conglomerate’s newly spun-off publishing company.

Mr. Thomson will run the separate, publicly traded company, which will include The Journal, The New York Post, HarperCollins and a suite of lucrative television assets in Australia. The announcement is expected as early as Monday, according to a person briefed on the company’s decision-making.

Mr. Thomson took over at The Journal in 2008, soon after News Corporation completed its $5.6 billion acquisition of Dow Jones. He serves as managing editor of The Journal and editor in chief of Dow Jones, which also publishes Barron’s and the Dow Jones Newswires.

Gerard Baker, a deputy managing editor at the Journal, will take over for Mr. Thomson at The Journal, said the person briefed on the decisions, who could not discuss private conversations publicly.

At The Journal, Mr. Baker has overseen Washington and political coverage, among other topics. He previously wrote a neoconservative column for The Times of London, also owned by News Corporation, and served as Washington bureau chief at The Financial Times, where Mr. Thomson was the top editor of the United States edition.

Mr. Thomson began his career at News Corporation in 1979 as a reporter at The Herald in Melbourne, Australia. He and Mr. Murdoch are both Australian, and have taken family vacations together. Mr. Murdoch is often seen in Mr. Thomson’s office in the Journal newsroom.

In his tenure at The Journal, Mr. Thomson increased circulation by broadening the newspaper’s focus beyond business to include more general-interest and lifestyle news. He oversaw an expansion of the newsroom budget, added photographs to go along with the paper’s signature dot drawings and introduced a local New York section.

Mr. Murdoch will serve as chairman of the publishing company and remain chief executive of the entertainment company, which will include News Corporation’s movie studio, Fox Broadcasting and cable channels like FX and Fox News.

News Corporation plans to complete its split, which was announced in June, in mid-2013. Additional announcements about the publishing company’s board and cash structure are expected before the end of the year.

A News Corporation spokeswoman declined to comment on the expected appointments, which were first reported in The Journal.

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Israel Moves to Expand Settlements in East Jerusalem

Rina Castelnuovo for The New York Times

From his home in East Jerusalem last year, Haj Ibrahim Ahmad Hawa looked at the separation barrier surrounding Jerusalem with the Israeli settlement of Maale Adumim in the background. More Photos »

JERUSALEM — As the United Nations General Assembly voted overwhelmingly to upgrade the Palestinians’ status Thursday night, Israel took steps toward building housing in a controversial area of East Jerusalem known as E1, where Jewish settlements have long been seen as the death knell for a two-state solution to the Israeli-Palestinian conflict.

A senior Israeli official, speaking on the condition of anonymity, said on Friday that the decision was made late Thursday night to move forward on “preliminary zoning and planning preparations” for housing units in E1, which would connect the large settlement of Maale Adumim to Jerusalem and therefore make it impossible to connect the Palestinian cities of Ramallah and Bethlehem to Palestinian neighborhoods of East Jerusalem. Israel also authorized the construction of 3,000 housing units in other parts of East Jerusalem and the West Bank, the official said.

The prime minister’s office refused to comment on whether the settlement expansion — first reported on Twitter by a reporter for the Israeli daily Haaretz — was punishment for the Palestinians’ success in upgrading its status from nonmember observer entity to nonmember observer state at the United Nations, but it was widely seen as such. The United States, one of only eight countries that stood with Israel in voting against the Palestinians’ upgrade, has for two decades vigorously opposed construction in E1, a 3,000-acre expanse of hilly parkland where a police station was opened in 2008.

In Washington, a State Department official criticized the move. “We reiterate our longstanding opposition to settlements and East Jerusalem construction,” he said. “We believe it is counterproductive and makes it harder to resume direct negotiations and achieve a two-state outcome.”

Hagit Ofran, who runs the Settlement Watch project of Peace Now, called E1 a “deal breaker for the two-state solution” and denounced the decision as “disastrous.”

“Instead of punishing the Palestinians, they are actually punishing Israel,” Ms. Ofran, who is Israeli, said in an interview. “Instead of taking advantage of this bid in the U.N. and calling for negotiations to get to a two-state solution, this government is choosing to take actions that might prevent the possibility of a two-state solution.”

But Dani Dayan, leader of Israel’s settler movement, welcomed the news, saying it was “a very important Israeli interest to develop E1.”

He described the two-state solution as “an existential threat to Israel” and said the E1 development was “beneficial for peace because a two-state solution is a prologue for another bloody confrontation.”

“The fear to develop the communities is not rational,” Mr. Dayan said. “The opposition to the settlements has become a kind of religious dogma for the West.”

Even Mr. Dayan, however, said he did not like the idea of expanding settlements “as a sort of retaliatory or punitive step.”

“Under the circumstances that we understand the government operates, I think it’s O.K.,” Mr. Dayan added. “We have a legal and a political and a moral right to build. It’s strategic for Jerusalem; to strengthen Jerusalem is the only horizon. We don’t see it as an obstacle to peace.”

Michael R. Gordon contributed reporting from Washington.

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Zynga shares slide after privileged status with Facebook ends

(Reuters) - Shares of gaming company Zynga Inc fell as much as 10 percent, a day after the "Farmville" creator reached an agreement with Facebook Inc that reduces its dependence on the social networking giant.

The companies reported in regulatory filings on Thursday that they have reached an agreement to amend a 2010 deal that was widely seen as giving Zynga privileged status on the world's No.1 social network.

Zynga gets a freer hand to operate a standalone gaming website, but gives up its ability to promote its site on Facebook and to draw from the thriving social network of about 1 billion users.

"Although Zynga investors have reacted negatively to Thursday's announcements so far, we view them as a long-term positive for both companies," Wedbush Securities analyst Michael Pachter said in a note to clients.

"Zynga now has an advantage to offer more payment options which could result in additional subscribers who are not Facebook users," he said, maintaining his "outperform" rating and price target of $4 on the stock.

Both internet companies have been trying to reduce their interdependence, with Zynga starting up its own Zynga.com platform, and Facebook wooing other games developers.

In recent quarters, fees from Zynga contributed 15 percent of Facebook's revenue, while Zynga relies on Facebook for roughly 80 percent of its revenue.

Francisco-based Zynga's shares were down 7 percent at $2.44 in morning trading on the New York Stock Exchange on Friday.

Facebook shares were down more than 1 percent at $26.98.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Don Sebastian)

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