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Take-Two unveils funding strategy for Zynga acquisition

Selling $2.7 billion in senior notes on April 14

Take-Two unveils funding strategy for Zynga acquisition

Take-Two Interactive has revealed that it will sell $2.7 billion in senior notes to raise money for its upcoming Zynga acquisition.

These senior notes are to be sold in an underwritten public offering and are a form of bond that would take priority above other debts in the event of bankruptcy.

The money intended to be raised will be used towards Take-Two’s acquisition of Zynga which, at the time of its announcement, was the biggest acquisition in the history of the games industry.

Taking note of the dates

The senior notes offering is planned for April 14 2022, with Take-Two obligated to redeem them should the acquisition of Zynga remain incomplete as of January 9 2023.

Currently named as joint book-running managers for the offering are four companies: BNP Paribas Securities, BofA Securities, JP Morgan Securities and Wells Fargo Securities.

There will be $1 billion in 3.3 per cent senior notes on offer - due in 2024 - in addition to $600 million in 3.55 senior notes due in 2025 and others due later still.

As part of the acquisition agreement, it was announced in January that shareholders in Zynga will receive $3.50 in cash and $6.36 in shares of Take-Two common stock, for a total value of $9.86 per share.

The value of the acquisition, $12.7 billion, was the industry’s biggest until Microsoft announced its acquisition of Activision Blizzard one week later. Microsoft entered an agreement to acquire the company for $68.7 billion.


Staff Writer

Aaron is the Staff Writer at PG.biz and has long enjoyed a good turn-based strategy game. He has spent many more hours playing Fire Emblem Heroes than he cares to admit.

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A R Market Director
Get your facts correct. The offering ends on April 14, 2022 or they hope to have completed it.
The closing of the offering is expected to occur on April 14, 2022, subject to satisfaction of customary closing conditions