For $12.7 Billion Take Two buys Zynga

2022-01-11T11:59:47
Electronic Arts Take-Two Zynga
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For $12.7 Billion Take Two buys Zynga

For $12.7 Billion Take Two buys Zynga: GTA will acquire all of Zynga’s shares for $12.7 Billion

With the clear goal of bringing console/PC games to mobile.

 

 Evest follows Zynga development in the following report 

Topics:

Take Two announced the acquisition of Zynga

Strauss Zelnick Take Two CEO 

Frank Gibeau CEO of Zynga

 

 

 

Take Two announced the acquisition of Zynga

In the  press release, Take-Two announced the acquisition of Zynga for $12.7 billion.

This deal is a combined cash and shares deal.

It is worth noting that the deal is not closed yet, because there is a “go-shop” condition where Zynga has 45 days to search for a better deal with a different company. 

Many may remember how Take-Two originally lined up for Codemasters before Electronic Arts entered  and bought Codemasters instead.

Take-Two mentioned that this is a transformative mix of businesses that will make it one of the biggest and most diversified mobile game publishers in the industry.

 

Strauss Zelnick Take Two CEO

 

Take-Two CEO Strauss Zelnick: We are more than happy to sign this transformative deal with Zynga which remarkably  will  varied our  action and  found our  chiefship in mobiles,
The fastest-growing industry in the interactive entertainment segment.

This strategic combination brings together best-in-class consoles and PCs,
with a diversified and a market-leading publishing platform with a rich history of innovation and creativity. 

Zynga has a very talented and experienced team, and we look forward to welcoming them into our family soon

As we combine our complementary businesses and operate on a much larger scale,
we believe we will deliver significant value to both groups of shareholders,
including $100 million in annual cost synergies during the first two years after closing and at least $500 million annually in net bookings opportunities over time”.

Take-Two obviously sees a lot of upside here,
as the $9,861 per share it paid for Zynga represents a 64% premium over Zynga’s closing price on Jan 7.

 

In the slideshow, Take-Two stated it sees a “clean path” to bringing the Take-Two console and PC video games to mobile, thanks  to the Zynga deal.

However, he didn’t  point out any particular names.

At Take-Two stated that  there can also be  an extra stay operations and go-events,
whilst it’s going to use Zynga’s offerings to assist accumulate extra users.

Take-Two additionally sees the purchase as assisting Take-Two increase into new geographies and focusing  on innovation and rising commercial enterprise models.

it stated that there is also  possibilities for go integration.

Take-Two additionally announced that extra than half  of Take-Two’s commercial enterprise income  will come from mobile,
illustrating how vital that is to the agency.

Mobile is the quickest developing phase of the online game industry.

 

 

Frank Gibeau CEO of Zynga

Uniting  forces with Take-Two allows the agency to enhance our charge to engage assiduity through videotape games,

while achieving tremendous growth and community together,” said Zynga CEO Frank Gibeau, a former CEO of Electronic Trades.

We’re so excited to have find partner in a Take two who shares  our dedication to making an investment in our players, amplifying our innovative culture,
and producing extra fee for shareholders.

With this transformative deal, we’re embarking on a brand new adventure so that it will permit us to create higher video games,
attain large audiences, and develop as a frontrunner withinside the subsequent gaming era.”

 

 

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