Take-Two Interactive, the company that owns Rockstar and 2K, announced that it has reached an agreement to purchase mobile game developer Zynga in what could be the most valuable video game acquisition of all time. Yes, even bigger than Microsoft’s acquisition of Bethesda.
Announced in a Press release, the two companies have agreed that Take-Two will acquire all of Zynga’s shares and acquire the company. The move is worth approximately $ 12.7 billion. Instead of a full cash purchase, Take-Two made the deal easier by purchasing the Zynga shares with a combination of the cash and Take-Two’s own shares.
The terms of the agreement provide that Zynga shareholders will receive $ 3.50 in cash and $ 6.36 of Take Two common stock, making each Zynga share value $ 9.86. This corresponds to a premium of 64% compared to the closing price of Zynga shares on January 7, 2022.
Star Wars Hunters – Screenshots and Graphics
“We are excited to announce our transformative transaction with Zynga, which will greatly diversify our business and cement our leadership position in wireless, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two . “This strategic combination brings together our industry-leading console and PC franchises with a market-leading, diversified mobile publishing platform with a rich history of innovation and creativity.”
The deal’s value in both cash and stock represents possibly the largest acquisition in video game history. The $ 12.7 billion value represents Tencent’s $ 8.6 billion purchase of Supercell and Microsoft’s $ 8.1 billion Acquisition of ZeniMax Media and Bethesda in the shadows, even if you adjust for inflation.
Zynga is one of the world’s most successful mobile game developers and has created hits like Words With Friends, Farmville and Harry Potter: Puzzles and Spells. It is currently working on Star Wars Hunters, a Nintendo Switch game set to be released in 2022.
Matt Purslow is the UK news and entertainment writer for IGN.