Gaming heavyweight Take-Two announces its acquisition of Zynga, in the largest games industry buyout – to date – with a deal totalling $12.7 billion USD.
The acquisition solidifies Frank Gibeau as the ongoing CEO and chairman of Zynga, and Take-Two’s management team will lead the joint venture. Zynga’s outstanding shares will be acquired by Take-Two, and Zynga stockholders will receive $3.50 USD cash and $6.361 USD in common stock Take-Two shares.
Take-Two’s games already include a stellar roster of notables such as Grand Theft Auto, NBA 2K and Borderlands, and with the combination of Zynga’s powerhouse collective – including FarmVille and Words With Friends – the deal foresees Take-Two becoming “one of the largest and most diversified mobile game publishers in the industry.” Take-Two’s “T2 Mobile Games” including WWE SuperCard, Top Eleven and Dragon City, will also be overseen by Zynga.
With more than 180 million subscribers and its free-to-play and cross-platform success, Zynga was a desirable asset for Take-Two, and a motivating factor to help the company expand its console and PC units in those areas. Take-Two expects its mobile unit to account for more than 50% of sales by 2023.
In a press statement, Take-Two 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. Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months,” he added.
In other gaming news, “Counter-Strike: Global Offensive” helps Steam to reach new all-time high of concurrent users.
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