Take-Two acquires mobile gaming giant Zynga for $12.7 billion. presentation On Monday. Under the terms of the merger agreement, Zynga shareholders received cash of $3.50 per share of Zynga common stock and 0.0406 shares of Take-Two common stock. First announced in January, the deal will bring Zynga’s hit games, including Farmville and Words With Friends, into Take-Two ownership.
“We are excited to complete our combination with Zynga, a pivotal step in providing significant cost synergies and revenue opportunities while exponentially increasing net bookings for mobile, the fastest-growing segment of interactive entertainment,” Take- In a statement, two CEOs Strauss Zelnick. “Each of our teams has a strong history of running operations, and together we look forward to improving our financial profile through greater scale and profitability, paving the way for strong shareholder value.”
It was previously announced that Zelnick would lead a larger company with Zynga CEO Frank Gibeau. Bernard Kim, President of Zynga Publishing, was due to work with Gibeau, but will leave Zynga later this month to become CEO of Match Group.
“Zynga’s next-generation mobile platform, free-to-play expertise, diverse game offering and amazing team are excited to join the Take-Two family,” said Frank Gibeau, CEO of Zynga. “We are eager to reach a broader market and continue to build an unparalleled portfolio of games that will lead to continued growth for the next chapter of Zynga’s history.”
Take-Two is known for its console and PC games, and Zynga has largely defined the mobile gaming genre, so the acquisitions merged the two gaming powerhouses. Take-Two already has a number of mobile game titles and has expanded their franchise to mobile, but this will give the company a much larger stake in the space.
Combined with Take-Two, which publishes Red Dead Redemption, Midnight Club, NBA 2K, BioShock, and more, Zynga will provide a massive library of franchises and IPs to build new mobile gaming experiences. Likewise, Zynga’s IP can now find new traction in a variety of formats and different screens.
The deal is one of several significant game 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 a cash transaction of $68.7 billion, including the company’s net cash. Less than two weeks later, Sony announced that it had acquired Bungie, the studio responsible for producing Halo and Destiny, for $3.6 billion.