Zynga, the developers behind popular games like FarmVille and Zynga Poker have been acquired by a company called Take-Two Interactive Software Inc for $12.7 billion. This acquisition will see Take-Two pay a 64.4% premium on Zynga’s last closing.
The company will now have access to Zynga’s entire gaming portfolio that includes FarmVille, CSR Racing, Empires & Puzzles, Golf Rival, Harry Potter: Puzzles & Spells, Toon Blast, Words with Friends, Hair Challenge, Merge Dragons!, High Heels!, and Zynga Poker.
According to Take-Two, the acquisition is viewed as complementary to its already existing console and PC game business. This deal also turns Take-Two into one of the largest mobile publishers. Strauss Zelnick, Chairman and CEO of Take-Two said, “I believe the acquisition to bring $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.”
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Take-Two is known for publishing the famous Grand Theft Auto series and also offers games like BioShock, NBA 2K, PGA Tour 2K, Red Dead, Borderlands, Civilization, WWE 2K, and XCOM. With its acquisition of a social-focused gaming company like Zynga, Take-Two can also utilise the popular games on mobile and online platforms.
The deal signed by Take-Two also allows Zynga to look out for other deals till 24th February. This leaves the door open for another company to make Zynga a better offer. However, with Take-Two already offering the company a premium share price, it seems unlikely that an alternative deal will take its place.
Donna Amo is a writer at Gutshot Magazine. She is a graduate from Sophia College of Women, Mumbai with a degree in English Literature. When this October born foodie is not writing content or poetry, she spends her time laughing at memes or watching series. Based out of Mizoram, she is drawn to all things nature and has a soft spot for puppies.
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