Take-Two Interactive To Acquire Zynga In A $12.7 Billion Deal- Header

Take-Two Interactive To Acquire Zynga In A $12.7 Billion Deal

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Red Dead Redemption and Grand Theft Auto makers Take-Two Interactive Software is acquiring FarmVille makers Zynga in a cash and stock deal that is roughly worth about $12.7 billion.

Take-Two Interactive To Acquire Zynga In A $12.7 Billion Deal- Inner 2

Strauss Zelnick, the CEO and Chairman of Take-Two Interactive, in a prepared statement said about the acquisition that, “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”. Zelnick will be retaining both these roles even after the two companies merge.

The transaction has been valued at $9.86 per share of the Zynga common stock. As a part of this acquisition, shareholders of Zynga will be receiving $3.50 in cash and $6.36 in Take-Two Interactive common stock shares for every share of outstanding Zynga stock at closing.

On Monday, Take-Two Interactive stated that within the first two years of the completion of this acquisition, it anticipates that the company will be saving about $100 million in annual costs.

This acquisition will be bringing together Take-Two Interactive which is a powerhouse in PC and console gaming with Zynga, a mobile gaming company that specializes in developing games for mobiles and tablets. Take-Two Interactive anticipates that this deal will help in bringing forth the mobile versions of some of their PC and console based games.

Take-Two Interactive To Acquire Zynga Games, In A Massive Deal

Take-Two Interactive To Acquire Zynga In A $12.7 Billion Deal- Inner 1

Frank Gibeau, CEO of Zynga and Bernard Kim, the company’s president of publishing will be overseeing this integration. They will also be overseeing the daily operations of the T2 Mobile Games and Zynga business. It will be operating within Take-Two Interactive under Zynga, as its own label.

Upon closing, Take-Two Interactive will also be expanding its board to up to ten members, to add two members from Zynga’s board. In addition to that, this acquisition also includes a provision for go-shop. This allows Zynga a window of forty five days where it can hear alternate proposals.

Following the announcement of this acquisition, the shares of the San Francisco based Zynga Inc. shot up by 52.5 per cent to$9.15. The shares of the New York based Take-Two Interactive however, took a blow and fell by 8.7 per cent to $150.25.

It is expected that this acquisition will be closed within Take-Two Interactive’s fiscal 2023 first quarter that is ending on June 30. The boards of both companies have approved the deal. However, the deal still awaits to be approved by the stockholders of both the parties concerned.

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Source: Press Release

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