Take-Two acquires mobile company Zynga2022-01-10 17:30 by Daniela
Tags: Zynga, Take-Two
Zynga, the mobile game developer known for hits like FarmVille, Words With Friends and a popular Texas Hold'em poker game, is pairing up with Take-Two Interactive, the developer of the Grand Theft Auto franchise of games.
Take-Two said Monday it is buying Zynga in a cash-and-stock deal valued at $12.7 billion, including debt. The deal values Zynga at $9.86 a share.
This is a part of a huge investment into the mobile space, combining Take-Two and Zynga's strengths to attempt further growth. According to Zynga CEO Frank Gibeau, they will be "combining Zynga's expertise in mobile and next-generation platforms with Take-Two's best-in-class capabilities and intellectual property." This means we can expect new mobile games utilizing popular Take-Two franchises.
"We are trying to build a business over a very long period of time," Take-Two CEO Strauss Zelnick told CNBC's "Squawk on the Street" on Monday. "We've paid attention to creating value for our players, for our colleagues and for our shareholders, and that's worked out over a very long period of time."
In addition to FarmVille and Words With Friends, Zynga's biggest games in recent years include CSR Racing 2, Zynga Poker, and a host of slot machine games, all of which are free-to-play and make money off of in-game advertising and microtransactions. Zynga is also preparing to launch Star Wars: Hunters, an arena combat game coming to Nintendo Switch, iOS, and Android later this year, after previously being delayed.
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