This is a new historic takeover that is hitting the video game industry this week. This time, Take-Two Interactive is in charge of this acquisition since the publisher has spent several billion dollars to offer the services of Zynga.
And the least we can say is that the announced amount makes you dizzy.
Easy money?
The information was communicated by Take-Two Interactive on Monday, January 10, 2022. The American firm is buying Zynga for a whopping $12,7 billion (via a transaction mixing shares and cash). Making it the biggest buyout in video game history. For comparison, Microsoft had paid "only" $ 7,5 billion when it offered ZeniMax Media (Bethesda Softworks) in 2020.
Specializing in the mobile games market, Zynga is behind titles such as FarmVille, Harry Potter: Puzzles and Spells and Live Poker. In recent years, the company headed by Frank Gibeau has encountered serious difficulties leading to numerous layoffs in the process. The takeover by Take-Two Interactive could potentially lead to better financial stability.
Full on mobiles
The objective of this takeover is clear to say the least! Zynga will allow Take-Two to bring its iconic licenses to mobile devices. The publisher sees this as an opportunity to diversify its business and position itself as a market leader in games for smartphones and tablets. What bring additional value to the two groups of shareholders since Zynga is listed on the stock exchange.
Finally, it should be noted that the redemption is not definitively validated. Another wealthy player has 45 days to submit a better offer and win the day. But Take-Two set the bar high with its big $12,7 billion check. To be continued…
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