Take-Two Interactive, the largest video game publisher behind “Grand Theft Auto” and “Red Dead Redemption,” revealed intentions to acquire mobile game company Zynga for $12.7 billion.
Take-Two Interactive said that its cash-and-stock acquisition of Zynga is worth 64 percent more than the company’s closing share price on January 7.
Take-Two Interactive is recognized in the video game industry for dozens of huge hits, including “Grand Theft Auto,” “Red Dead Redemption,” and the “NBA 2K” basketball franchise, while Zynga is one of the most well-known names in mobile gaming.
Despite the fact that Zynga’s best-known brand recognition stems from the long-dormant “Farmville” franchise, it has recently achieved success in mobile games licensed from “Harry Potter” and “Star Wars,” among other things. The company also owns “Words with Friends.”
TakeTwo & Zynga deal will be completed in June
TakeTwo has confirmed that the acquisition is expected to be completed in June. As part of the agreement, which TakeTwo claims will be completed in June, Zynga will operate as a standalone organization. Former Zynga CEO Frank Gibeau and Zynga president of publishing Bernard Kim will remain in charge of the Zynga subsidiary.
Going forward, Zynga’s nearly 3,000 employees will work on the “creation of new mobile games for many of the iconic franchises within Take-Two’s portfolio of intellectual property.”