Take-Two Interactive to acquire ZynGa for $12.7 billion 

Take-Two Interactive to acquire ZynGa for $12.7 billion 

Take-Two Interactive has announced a definitive deal under which the New York-based company will acquire social game/ free slots developer Zynga for $9.861 per Zynga share, based on the market closing on January 7, 2022, for a total enterprise value of about $12.7 billion.

Take-Two Interactive – Zynga Acquisition 

Zynga stockholders will receive $3.50 in cash and $6.361 in Take-Two common stock for each share of common stock outstanding at closing, under the terms and conditions of the transaction. The acquisition price is 64% higher than the group’s closing share price on January 7, 2022.

The acquisition, hailed as a union of “two world leaders” in interactive entertainment, is estimated to provide annual cost synergies in the neighborhood of $100 million within the first two years following completion. The acquisition is expected to close in the first quarter of Take-fiscal Two’s year 2023, which ends June 30, 2022, pending approval by both firms’ stockholders and fulfilment of customary closing conditions, including appropriate regulatory clearances.

Both Two-Take and Zynga’s boards of directors unanimously approved the transaction, with each director and executive officer additionally entering into voting agreements in support of the transaction.

Quotes from the Press Release

“We are excited to announce our transformational acquisition with Zynga, which dramatically diversifies our business and positions us as the market leader in mobile, the fastest expanding part of the interactive entertainment industry,” said Strauss Zelnick, chairman, and CEO of Take-Two.

“This strategic partnership unites our industry-leading console and PC franchises with a market-leading, diversified mobile publishing platform with a long history of innovation and creativity.” Zynga’s staff is also highly talented and experienced, and we look forward to welcoming them to the Take-Two family in the coming months.

“By combining our complementary businesses and operating at a much larger scale, we believe we can deliver significant value to both sets of stockholders, including $100 million in annual cost synergies within the first two years following the transaction’s close and at least $500 million in annual net bookings opportunities over time.”

“By combining Zynga’s expertise in mobile and next-generation platforms with Take-best-in-class Two’s capabilities and intellectual property, we will be able to accelerate our mission of connecting the world through games while simultaneously achieving significant growth and synergies,” said Frank Gibeau, CEO of Zynga.

“I am happy of our team’s efforts to provide a solid conclusion to 2021, one of the best in Zynga’s history. We’re ecstatic to have found a partner in Take-Two who shares our dedication to investing in our players, magnifying our creative culture, and increasing shareholder value.

“With this transformational transaction, we embark on a new adventure that will enable us to produce even greater games, expand our audience reach, and establish ourselves as a leader in the next era of gaming.”

Take-portfolio Two includes Grand Theft Auto, Red Dead Redemption, Mafia, and NBA 2K. In contrast, Zynga’s network contains titles such as Game of Thrones Slots Casino and Zynga Poker, as well as CSR Racing, Empires & Puzzles, and FarmVille.

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.