Tuesday, January 18, 2022
HomeTop StoriesGrand Theft Auto, meet FarmVille

Grand Theft Auto, meet FarmVille

Take-Two stated Monday it’s shopping for Zynga in a cash-and-stock deal valued at $12.7 billion, together with debt. The deal values Zynga at $9.86 a share.

Shares of Zynga (ZNGA) soared greater than 40% on the information in late afternoon buying and selling, whereas Take-Two (TTWO) sank virtually 15%.

The deal offers Take-Two an even bigger presence within the profitable world of cellular gaming, increasing its enterprise past the console and PC video games it’s primarily recognized for, together with NBA 2K, Red Dead Redemption and the GTA sequence.

“We are thrilled to announce our transformative transaction with Zynga, which considerably diversifies our enterprise and establishes our management place in cellular, the quickest rising phase of the interactive leisure trade,” stated Strauss Zelnick, Take-Two’s chairman and CEO, in an announcement.

For Zynga, the takeover offers the corporate a deeper pocketed father or mother within the gaming enterprise that may assist it develop.

Zynga went public in 2011 at $10 a share, however the inventory has languished since then. That’s partly because of the fickle nature of the cellular gaming enterprise — a decade later, it is Roblox that is all the craze.
But it is also as a result of Facebook (FB) (now often known as Meta Platforms) and Zynga inked a brand new enterprise deal in 2012 that lessened Zynga’s reliance on Facebook for income. That damage Zynga.

Zynga hopes the merger with Take-Two will result in extra progress alternatives.

“Combining Zynga’s experience in cellular and next-generation platforms with Take-Two’s best-in-class capabilities and mental property will allow us to additional advance our mission to attach the world via video games whereas attaining important progress,” stated Zynga CEO Frank Gibeau in an announcement.

The mixed Zynga/Take-Two ought to be capable to compete extra successfully with red-hot Roblox, whose inventory has soared for the reason that firm listed shares immediately on the New York Stock Exchange final 12 months.
Take-Two additionally competes with Electronic Arts (EA) and Activision Blizzard (ATVI) available in the market for video games for the favored Nintendo (NTDOF) Switch, Microsoft (MSFT) Xbox and Sony PlayStation consoles.
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