Take-Two completes $12.7 billion acquisition of mobile gaming giant Zynga – TechCrunch
Take-Two has completed its $12.7 billion acquisition of mobile gaming giant Zynga, the company announced Monday. Under the terms of the merger agreement, Zynga shareholders received $3.50 in cash and 0.0406 shares of Take-Two common stock per share of Zynga common stock. The deal, which was first announced in January, will bring popular Zynga games under Take-Two ownership, including Farmville and Words With Friends.
“We are thrilled to complete our association with Zynga, which is a critical step to exponentially increase our net bookings from mobile, the fastest growing segment of interactive entertainment, while also providing us with cost synergies. and substantial revenue opportunities,” Take-Two CEO Strauss Zelnick said in a statement. “Each of our teams has a strong track record of operational execution, and together we plan to improve our financial profile through greater scale and increased profitability, paving the way for strong shareholder value.”
It was previously announced that Zelnick will lead the largest venture with Zynga CEO Frank Gibeau. Zynga’s president of publishing, Bernard Kim, was supposed to work alongside Gibeau, but is leaving Zynga to become CEO of Match Group at the end of this month.
“We’re thrilled to have Zynga’s next-generation mobile platform, free-to-play expertise, diverse game offerings, and incredible team join the Take-Two family,” said Zynga CEO Frank Gibeau. . “We look forward to continuing to build an unprecedented games portfolio that will reach broader markets and drive continued growth for this next chapter in Zynga’s history.”
The acquisition brings together two gaming powerhouses, as Take-Two is known for console and PC gaming, while Zynga has largely defined the mobile gaming genre. Although Take-Two already has a number of mobile game titles and has expanded its franchises into mobile, this will give the company a much bigger stake in the space.
As for Zynga, the combination with Take-Two, which also publishes Red Dead Redemption, Midnight Club, NBA 2K, BioShock and more, will give it a large library of franchises and IPs from which to create new mobile gaming experiences. . Likewise, Zynga’s IP can now find new traction in different formats and different screens.
The deal marks one of several significant gaming acquisitions announced earlier this year. A week after the Take-Two and Zynga news broke, Microsoft announced it would acquire gaming giant Activision Blizzard in an all-cash deal worth $68.7 billion, including net cash. of the company. Less than two weeks later, Sony announced that it had acquired Bungie, the studio responsible for creating Halo and Destiny, in a deal valued at $3.6 billion.