Take-Two stated Monday that it was buying Zynga for $12.7 billion in cash-and-stock, plus debt. Zynga will be valued at $9.86 per Share.
Take-Two gains a stronger presence in mobile gaming’s lucrative market. This deal will allow Take-Two to expand its business beyond the PC and console games it is best known for such as NBA 2K and Red Dead Redemption.
Strauss Zelnick (Take-Two’s CEO and chairman) said in a statement, “We are thrilled that we announce our transformative transaction avec Zynga”,
Zynga’s takeover means that the company has a more financially secure parent in the gaming industry, which can help the company grow.
Zynga is hopeful that the merger of Take-Two and Zynga will result in more growth opportunities.
Frank Gibeau, Zynga CEO, stated that “Combining Zynga’s expertise in mobile platforms and next-generation platforms and Take-Two’s best-in-class capabilities as well as intellectual property will allow us to further advance and achieve significant growth.”