In short: Video game publisher Take-Two Interactive is trying to acquire Zynga for $ 12.7 billion, making it one of the largest buyouts in the video game industry. The deal has yet to be closed as Zynga still has 45 days to find alternative offers from other companies.
After 45 days, and if no other company offers a better deal, Zynga should be under Take-Two’s wing. However, it will only happen during the first quarter of the publisher’s fiscal year 2023, after shareholders approve the deal. The boards of directors of both companies have already unanimously agreed on the terms of the acquisition.
For Take-Two, Zynga will serve as a gateway to mobile and social media gaming, allowing the publisher to bring some of its largest franchises to more platforms. Take-Two Interactive owns several successful titles including Borderlands, Red Dead, Grand Theft Auto, NBA 2K, and Sid Meier’s Civilization to name just a few.
Zynga has also established itself as a competent publisher and game developer with the launch of the world famous Ville series including FarmVille, CityVille and YoVille. Other titles and series of games owned by the social gaming company are CSR Racing, Words With Friends, Empires & Puzzles, and Tangle Master 3D.
“We are thrilled to announce our transformational deal with Zynga, which will significantly diversify our business and strengthen our leadership position in the mobile segment, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We believe we will deliver significant value to both stakeholder groups, including $ 100 million in annual cost synergy for the first two years after the close of the deal and at least $ 500 million in annual Net Bookings opportunity over time.”
Take-Two Interactive’s acquisition of Zynga comes more than a year after the publisher tried to acquire racing game developer Codemasters for an estimated $ 1 billion. However, that didn’t happen as EA closed a $ 1.2 billion deal with the game developer.
The $ 12.7 billion acquisition of Zynga may well be the most expensive in video game history. Prior to that, Tencent acquired a controlling stake in Supercell for $ 8.57 billion, and most recently, Microsoft bought Bethesda for $ 7.5 billion.