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Take-Two acquires Zynga at $12.7 billion valuation

Second largest games industry acquisition

Date Type Companies involved Size
January 10th, 2022 acquisition Take-Two Interactive
Zynga
$12,700m
Take-Two acquires Zynga at $12.7 billion valuation

Take-Two has revealed that it has acquired mobile games industry leader Zynga, valuing the firm at $12.7 billion.

As part of the agreement, shareholders in Zynga will receive $3.50 in cash and $6.36 in shares of Take-Two common stock, to a total value of $9.86 per share. The purchase price represents a 64 per cent premium to Zynga’s closing price on January 7 2022.

Going forward, Zynga will lead Take-Two’s mobile operations, including its T2 Mobile Games business, and will continue to operate under the Zynga brand within the company.

Through the acquisition, Take-Two has stated that the addition of Zynga’s mobile titles, such as FarmVille and Zynga Poker, will increase its capacity for "recurrent consumer spending" via the latter’s live ops mobile operations.

In the 12-month period ending September 30 2021, the companies’ collective net bookings reached $6.1 billion, making it one of the largest publicly traded interactive company worldwide.

Expanding mobile enterprise

"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 Zynga CEO Frank Gibeau.

"With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming."

Take-Two chairman and CEO Strauss Zelnick added: "We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry. 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."

Both Gibeau and Zelnick will remain in their respective positions, alongside Zynga president of publishing Bernard Kim, who will assist in directing the firm’s mobile efforts. Furthermore, Take-Two has stated that it will increase its board of directors to 10 to bring in two members from Zynga’s board.

The transaction is expected to be completed at the end of Take-Two’s Q1 2023 quarter, ending June 30 2022. Further, the transaction is subject to approval from shareholders of both parties and regulators.


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