GTA Maker Take-Two Buys Farmville Maker Zynga in $12.7 Billion Deal
Take-Two Interactive, maker of Grand Theft Auto and Red Dead Redemption, is buying Zynga, maker of FarmVille and Words With Friends, in a cash-and-stock deal with an enterprise value of about $12.7 billion (roughly Rs. 94,030 crore).
Zynga shareholders will receive $3.50 (roughly Rs. 260) in cash and $6.36 (roughly Rs. 470) in shares of Take-Two common stock for each share of Zynga outstanding stock at closing.
Take-Two said Monday it anticipates $100 million (roughly Rs. 740 crore) in annual cost savings.
The deal is expected to close during the first quarter of Take-Two’s fiscal 2023, ending June 30. It still needs approval of both Take-Two and Zynga stockholders.
Shares of Zynga, based in San Francisco, jumped 52 percent to $9.14 (roughly Rs. 680). Shares of Take-Two Interactive Software, based in New York City, fell more than 8 percent to $150.66 (roughly Rs. 11,160).
“Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together,” said a statement from Take-Two Interactive on the announcement.
The company said the transaction is expected to establish Take-Two as a leader in mobile gaming, with mobile expected to comprise over 50 percent of its net bookings in FY 2023 (as compared to an estimated 12 percent in Fiscal Year 2022).
Catch the latest from the Consumer Electronics Show on Gadgets 360, at our CES 2022 hub.
For all the latest Games News Click Here