Take-Two Interactive, the company that owns Rockstar and 2K, has announced that it has entered into an agreement to buy mobile game developer Zynga in a massive deal that could be the highest-valued video game acquisition of all time. Yes, even bigger than Microsoft's buyout of Bethesda.
Announced in a press release, the two companies have agreed that Take-Two will acquire all of Zynga's shares and take ownership of the company. The value of the move is approximately $12.7 billion. Rather than a total cash buyout, Take-Two has facilitated the deal by purchasing Zynga's shares using a combination of cash and Take-Two's own stock.
The terms of the agreement sees Zynga stockholders receiving $3.50 in cash and $6.36 worth of Take-Two common stock, making each Zynga share value at $9.86. This marks a premium of 64% on Zynga's closing share price on January 7, 2022.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two. “This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity."
The deal's value across both cash and stock represents what could be the largest acquisition in video game history. The $12.7 billion value eclipses Tencent's $8.6 billion purchase of Supercell, and Microsoft's $8.1 billion acquisition of ZeniMax Media and Bethesda, even when adjusting for inflation.
Zynga is one of the world's most successful mobile games developers, having created hits such as Words With Friends, Farmville, and Harry Potter: Puzzles and Spells. It is currently working on Star Wars Hunters, a Nintendo Switch game set for release in 2022.
Matt Purslow is IGN's UK News and Entertainment Writer.
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Announced in a press release, the two companies have agreed that Take-Two will acquire all of Zynga's shares and take ownership of the company. The value of the move is approximately $12.7 billion. Rather than a total cash buyout, Take-Two has facilitated the deal by purchasing Zynga's shares using a combination of cash and Take-Two's own stock.
The terms of the agreement sees Zynga stockholders receiving $3.50 in cash and $6.36 worth of Take-Two common stock, making each Zynga share value at $9.86. This marks a premium of 64% on Zynga's closing share price on January 7, 2022.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two. “This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity."
The deal's value across both cash and stock represents what could be the largest acquisition in video game history. The $12.7 billion value eclipses Tencent's $8.6 billion purchase of Supercell, and Microsoft's $8.1 billion acquisition of ZeniMax Media and Bethesda, even when adjusting for inflation.
Zynga is one of the world's most successful mobile games developers, having created hits such as Words With Friends, Farmville, and Harry Potter: Puzzles and Spells. It is currently working on Star Wars Hunters, a Nintendo Switch game set for release in 2022.
Matt Purslow is IGN's UK News and Entertainment Writer.
Continue reading...