Take-Two Plans to Acquire Zynga for $12.7 billion

Zynga headquarters in San Francisco, California, U.S., on Wednesday, Aug. 4, 2021. Zynga Inc. is expected to release earnings figures on August 5. Photographer: David Paul Morris/Bloomberg

It’s this year’s first big acquisition … for those who don’t know, Take-Two already owns Rockstar Games, Codemasters and 2K.

Taken from Engadget … PC gaming Giant Take-Two has announced that it’s making a big move into mobile gaming with the acquisition of Zynga for a total price of approximately $12.7 billion. Take-Two already owns Rockstar Games, Codemasters and 2K, producing games like Grand Theft AutoRed Dead RedemptionBioshock and others. Zynga, meanwhile, produces well-known mobile titles like CSR RacingFarmVille, and Words with Friends.

Take-Two said that the deal will result in $6.1 billion worth of 12-month pro-forma net bookings, meaning it will become one of the largest gaming companies in the world. “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,” said Take-Two Chairman and CEO Strauss Zelnick. The deal will also help Take-Two save about $100 million annually after two years.

Zynga itself was on an acquisition streak of late, having acquired the studio behind Torchlight 3 early last year. Zynga has sometimes relied on acquisitions to find the hottest games in the notoriously fickle mobile gaming market. Still, Take-Two said that the mobile industry booked $136 billion 2021 and is currently growing at over 8 percent, so the money is there to be had. Mobile will now account for half of its net bookings (net amount of products and services sold digitally or sold-in physically), the company said.

Source: Engadget

 

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