Maxi acquisition in the video game industry. Take-Two Interactive bought Zynga for $9,86 a share, including $3,5 in cash and $6,36 in stock. The price is equivalent to a 64 percent premium to the stock's close on Friday, Jan. 7. Overall, the transaction, which should be completed within the first half of 2022, has a value equal to 12,7 billions of dollars.
Take-Two Interactive is a US holding company that owns companies such as Rockstar Games, 2K, Private Division and Ghost Story. Zynga, on the other hand, is a mobile gaming company, best known for FarmVille and its games available on Facebook. In recent years, the company's core business has shifted to the mobile versions of video games.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our position as the leadership in furniture, the fastest growing segment of the interactive entertainment industry – said Strauss Zelnick, president and CEO of Take-Two – This strategic combination brings together our best franchises for consoles and PC, with a diversified and leading mobile publishing platform market with a rich history of innovation and creativity”.
“As we combine our complementary businesses and operate on a much larger scale, we believe we will deliver significant value to both sets of shareholders, including $100 million of synergies of annual costs within the first two years after closing and at least $500 million of Net Bookings opportunity over time,” Zelnick added.
The deal between the two companies immediately caught the attention of New York investors. On the Nasdaq, where it is listed, the Zynga title flies, gaining 48,33% at $8,90 per share and approaching the price offered by Take Two. As per tradition, the buyer loses ground, losing more than almost 9% and standing at 150,3 dollars per share.
