San Francisco, Jan 11 (SocialNews.XYZ) US-based video company company Take-Two Interactive is acquiring mobile games giant and FarmVille developer Zynga for $12.7 billion.
The acquisition will not only establish Take-Two as one of the largest publishers of mobile games but also create one of the largest publicly traded interactive entertainment companies in the world.
Take-Two will acquire all the outstanding shares of Zynga for a total value of $9.861 per share - $3.50 in cash and $6.361 in shares of Take-Two common stock, implying an enterprise value of $12.7 billion, the company said in a statement late on Monday.
"We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry," said Strauss Zelnick, Chairman and CEO of Take-Two.
Mobile gaming is the fastest growing segment within the industry, with an estimated $136 billion in gross bookings in 2021, and an expected compound annual growth rate of 8 per cent over the next three years.
"We will deliver significant value to both sets of stockholders, including $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," he explained.
Take-Two's labels are home to some of the most beloved series in the world, including Grand Theft Auto, Red Dead Redemption, Midnight Club, NBA 2K, BioShock, Borderlands, Civilization, Mafia, and Kerbal Space Program.
Zynga's portfolio includes renowned titles, such as CSR Racing, Empires & Puzzles, FarmVille, Golf Rival, Hair Challenge, Harry Potter: Puzzles & Spells, High Heels!, Merge Dragons! And others.
"Combining Zynga's expertise in mobile and next-generation platforms with Take-Two's best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together," said Frank Gibeau, CEO of Zynga.
"With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming," he added.
At the close of the transaction, Zelnick will continue to serve as Chairman and CEO, and the management team of Take-Two will continue to lead the combined company.
Source: IANS
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