Home Gaming Take-Two Buys Zynga For $12.7 Billion, Says There Is “Clear Path” To...

Take-Two Buys Zynga For $12.7 Billion, Says There Is “Clear Path” To Bring Games To Mobile

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Grand Theft Auto firm Take-Two is buying FarmVille firm Zynga for $12.7 billion, the corporate introduced on Monday morning. This can be a mixed money and inventory deal.

In a information launch, Take-Two stated it is a “transformative combination” of firms that makes Take-Two “one of the largest and most diversified mobile game publishers in the industry.”

“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,” Take-Two CEO Strauss Zelnick stated. “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. As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time.”

Take-Two clearly sees quite a lot of upside right here, because the $9.861 per share that it paid for Zynga represents a 64% premium on Zynga’s closing share worth on January 7.

Zynga CEO Frank Gibeau, a former govt at Digital Arts, stated becoming a member of forces with Take-Two permits the corporate to “further advance our mission to connect the world through games while achieving significant growth and synergies together.”

“We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”

In a slide deck, Take-Two stated it sees a “clear path” for bringing Take-Two’s console and PC video games to cellular, thanks partly to the Zynga deal. It didn’t, nevertheless, identify any particular titles.

There may additionally be extra reside operations and crossover occasions between IP, Take-Two stated, whereas it would use Zynga’s companies to assist purchase extra customers. Take-Two additionally sees the acquisition as serving to Take-Two broaden into new geographies and “further focus on innovation and emerging business models.” There are additionally alternatives for cross-play integration, Take-Two stated.

Take-Two and Zynga are merging

Take-Two will maintain a convention name at 8 AM ET as we speak, January 10, to debate the acquisition–keep checking again with GameSpot for extra.

Grand Theft Auto firm Take-Two is buying FarmVille firm Zynga for $12.7 billion, the corporate introduced on Monday morning. This can be a mixed money and inventory deal.

In a information launch, Take-Two stated it is a “transformative combination” of firms that makes Take-Two “one of the largest and most diversified mobile game publishers in the industry.”

“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,” Take-Two CEO Strauss Zelnick stated. “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. As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time.”

Take-Two clearly sees quite a lot of upside right here, because the $9.861 per share that it paid for Zynga represents a 64% premium on Zynga’s closing share worth on January 7.

Zynga CEO Frank Gibeau, a former govt at Digital Arts, stated becoming a member of forces with Take-Two permits the corporate to “further advance our mission to connect the world through games while achieving significant growth and synergies together.”

“We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”

In a slide deck, Take-Two stated it sees a “clear path” for bringing Take-Two’s console and PC video games to cellular, thanks partly to the Zynga deal. It didn’t, nevertheless, identify any particular titles.

There may additionally be extra reside operations and crossover occasions between IP, Take-Two stated, whereas it would use Zynga’s companies to assist purchase extra customers. Take-Two additionally sees the acquisition as serving to Take-Two broaden into new geographies and “further focus on innovation and emerging business models.” There are additionally alternatives for cross-play integration, Take-Two stated.

Take-Two and Zynga are merging
Take-Two and Zynga are merging

Take-Two will maintain a convention name at 8 AM ET as we speak, January 10, to debate the acquisition–keep checking again with GameSpot for extra.

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