Take-Two Interactive, a video game publisher, has announced its plan to acquire a controlling stake in Zynga, the renowned mobile game developer known for its popular FarmVille series on Facebook. The acquisition will involve Take-Two purchasing all of Zynga’s outstanding shares at $9.86 each, marking a significant 64% increase from Zynga’s recent closing share price. This acquisition will cost Take-Two approximately $12.7 billion, making it one of the largest acquisitions in the video game industry in recent times.
“This strategic combination will bring together our exceptional console and PC franchises with a leading mobile publishing platform that has a strong track record of innovation and creativity,” stated Take-Two CEO Strauss Zelnick in a press release.
Zynga gained immense success with the launch of FarmVille, becoming one of the most prominent game app developers on Facebook. As the mobile industry grew, Zynga shifted its focus to mobile games to align with the rising popularity of smartphones. Analysts view Take-Two’s acquisition of Zynga as a savvy move that will enhance their position in the mobile app market and capitalize on the increased demand for gaming due to COVID-19 lockdowns.
Take-Two Interactive has reached a deal to buy Zynga in a $12.7 billion deal, uniting two video game companies with a presence across multiple gaming platforms https://t.co/h83k1Bwlf5
— The Wall Street Journal (@WSJ) January 10, 2022
Michael Pachter, managing director of equity research at Wedbush Securities, suggested that Take-Two could strengthen its mobile division by leveraging existing brands and transforming them into successful mobile franchises.
Assuming regulatory and shareholder approvals proceed smoothly, the acquisition deal is anticipated to be finalized on or before June 30, 2022.
