Biggest game company acquisition by Take-Two: Previously, the largest game company acquisition was Microsoft’s purchase of Bethesda for $7.5 billion. But the record will soon be broken by Take-Two when it completes the acquires the mobile game developer Zynga for an approximate $12.7 billion. The two companies are still conducting talks but the deal is already moving onto its final phase. Let’s know more details about the acquisition.
Farmville creator Zynga will be acquired by Take-Two for the price of $12.7 billion
If you do not know a lot about Take-Two, it is the parent company of Rockstar, the creator of the massively popular gaming series Grand Theft Auto and Red Dead Redemption. Take-Two Interactive Software now is in plans to completely acquire all the shares of Zynga and take full ownership of the mobile/social game developing company. This deal could be the highest-value video game company acquisition as it can reach $12.7 billion. Thus, it will dwarf the price of Microsoft’s acquisition of Bethesda.
Biggest game company acquisition by Take-Two that can takeover Microsoft’s Bethesda purchase; Check details
Rather than a complete buyout with cash, Take-Two has facilitated the deal to advance by purchasing all of Zynga’s shares using a combination of cash and Take-Two’s own worth of stocks. One of the terms of agreement of this deal is that Zynga stockholders will receive $3.50 in cash and $6.36 worth of the Take-Two common stock, which will make each Zynga share value at $9.86. Thus it will be a premium of 64% on Zynga’s current closing share price as reported on 7th January 2022.
The Chairman and CEO of Take-Two, Strauss Zelnick has told that “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.” Thus, it looks like Take-Two wishes to expand into the mobile gaming market in the future.
Zynga is a popular mobile game developer known for its gaming titles like Words With Friends, Farmville, and Harry Potter: Puzzles and Spells. The $12.7 valued deal will overtake all the past records of video game company acquisitions, overcoming Tencent’s $8.6 billion purchase of Supercell, and Microsoft’s $8.1 billion acquisition of ZeniMax Media and Bethesda.
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