In an interesting set of events, Take-Two Interactive, the GTA publisher is acquiring Zynga- the maker behind the popular mobile title FarmVille. The game publisher has signed a deal valued at $12.7 billion in a cash and stock transaction which is cited to be one of the biggest acquisitions in the video game industry. Also Read - Grand Theft Auto: The Trilogy – Definitive Edition new bug allows you to double the size of your car
The developers infamously known for bringing well-known game series like Red Dead Redemption, NBA 2K, Borderlands, will venture into the mobile market segment with the new deal. As Zynga already has a strong portfolio and a good user base it may rake Take-Two Interactive’s spot in the mobile game space. Also Read - GTA The Trilogy-Definitive Edition re-listed for PC gamers via Games Launcher
“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. This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity. Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months. As we combine our complementary businesses and operate at a much larger scale, we believe that 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,” Strauss Zelnick, chairman, and CEO of Take-Two said. Also Read - Grand Theft Auto: The Trilogy - The Definitive Edition footage leaked: Take a look here
Commenting on the acquisition, Frank Gibeau, CEO of Zynga said, “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. I am proud of our team’s hard work to deliver a strong finish to 2021, with one of the best performances in Zynga’s history. We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. 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.” (via tvtech)
Notably, some of the leading tech companies in the recent past made similar deals in the gaming space, for instance, Microsoft’s $7.5 billion purchase of Bethesda, or Netflix acquiring Night School Studio last year, and Sony taking up Bluepoint Games. As for Take-Two, it will have an upper hand in Zynga’s mobile games library including Monster Legends, Two Dots, etc.