Take-Two Interactive Software Inc. has agreed to purchase Zynga Inc. in a deal valued at roughly $11 billion. The deal will give Zynga stockholders $9.86 for every stock they own by giving each stockholder $3.50 in cash and an additional $6.36 in Take-Two stock.
Take-Two is an American video game holding company that owns video game developers like 2K and Rockstar. Take-Two is most known for its work on video games such as Grand Theft Auto and the NBA 2K series as well as less known titles such as the Bioshock series and Borderlands.
With the acquisition of Zynga, Take-Two intends on expanding its influence within the mobile gaming industry as Zynga made its mark through the development of the Facebook game FarmVille but has since gained its success through mobile apps such as Words With Friends.
Zynga has experienced a rollercoaster of success as the pandemic and social distancing restrictions have allowed for mobile gaming and the gaming industry in general to experience significant growth. However, as restrictions begin to wane and targeted advertising becomes more difficult with new Apple restrictions, Zynga’s growth has begun to diminish in recent months.
The deal between Take-Two and Zynga is expected to close by midyear, and once the debt is accounted for the enterprise value of the deal could reach $12.7 billion.
Source: Yahoo News