Take-Two Acquires Zynga for Nearly $13 Billion

Take-Two Interactive, the company that produced the Grand Theft Auto series, has announced the purchase of all outstanding shares of Zynga for $12.7 billion.

The publisher giant revealed in a press release this morning that Take-Two was spending $9.86 per share to acquire Zynga, best known for titles like FarmVille, Words With Friends, and the upcoming Star Wars: Hunters. Immediately upon putting Zynga under the Take-Two umbrella, Take-Two became one of the largest mobile game publishers in the world. According to the press release, it is “the fastest growing segment of the interactive entertainment industry.”

”[This acquisition] brings together highly complementary businesses, including Take-Two, a best-in-class console and PC gaming portfolio, and Zynga’s industry-leading mobile franchise,” read a press release for the announcement . “[And] makes one of the largest publicly traded interactive entertainment companies in the world.”

Strauss Zelnick, CEO and Chairman of Take-Two, said the acquisition will pave the way for the company to create more mobile games based on titles already popular on console and PC.

“This strategic combination combines best-in-class console and PC franchises with a variety of market-leading mobile publishing platforms with a rich history of innovation and creativity,” writes Zelnick. “We believe it will provide significant value to both shareholders as we combine our complementary businesses and operate at a much larger scale.”

This acquisition is a smart move for Take-Two given the rapid growth of the mobile market. As pointed out in the press release, it is the fastest-growing segment of the game development industry, with “total bookings estimated at $136 billion in 2021”.

Zynga is a nearly 3,000-employee company, and after the deal closes, things are likely to continue as usual, and so is the company’s leadership.

“Once the transaction closes, Strauss Zelnick will continue to serve as Chairman and CEO, and Take-Two’s management will continue to lead the combined company,” the press release said. “The highly skilled and proven Zynga management team, led by Frank Gibeau and Bernard Kim, President of Publishing at Zynga, will lead the strategic direction for Take-Two’s mobile efforts and oversee the day-to-day operations of integrated Zynga. and the T2 mobile gaming business, which will operate under the Zynga brand under its own label within the company. Take-Two will also expand its board of directors to 10 when the transaction is complete, adding two members to Zynga’s board.”

The transaction is expected to close during the first quarter of 2023 of Take-Two’s fiscal year, which ends on June 30, 2022.