Take-Two has entered an agreement to buy Zynga for $12.7 billion
It'll be the biggest acquisition in the history of the games industry if it is completed.
The owner of 2K Games and Rockstar, Take-Two Interactive, has announced that it has entered into an agreement to acquire the mobile gaming giant, Zynga. After previously buying a bunch of Zynga's shares in the past, Take-Two has ramped up its efforts with the intention to also pick up the company, for a truly jaw-dropping price of $12.7 billion.
Revealed in a press release, Take-Two has facilitated the deal by acquiring Zynga's shares through a combination of actual money and also Take-Two's own stocks. It's mentioned that Zynga's shares are valued at $9.86, and that with the terms of this acquisition in mind, Zynga stockholders will receive $3.50 in cash and $6.36 worth of Take-Two stock.
Speaking about the acquisition, Take-Two's chairman and CEO, Strauss Zelnick, said, "We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry. 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."
As with deals of this size, at the current moment in time this is only an agreement to acquire Zynga, meaning it will not close and be official until the end of the first quarter of Take-Two's fiscal year, ending on June 30, 2022. Assuming the transaction has been approved by that date, this will become the largest acquisition in games history, beating out Tencent acquiring Supercell for $8.6 billion and Microsoft acquiring ZeniMax Media for $7.5 billion.