Take-Two says the deal will bolster its business in mobile games, the fastest-growing segment of the interactive entertainment industry.
New York City-based Take-Two is best known for console and PC game franchises such as "Grand Theft Auto," "Red Dead Redemption" and "NBA 2K." San Francisco-based Zynga makes mobile games such as "Empires & Puzzles," "Toon Blast," "Words With Friends" and "Zynga Poker."
Take-Two will pay a total value of $9.86 per share for Zynga, including $3.50 in cash and $6.36 in shares of TTWO stock. The transaction represents a 64% premium to Zynga's closing share price on Friday.
Deal Called 'Strategic Combination'
"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," Take-Two Chief Executive Strauss Zelnick said in a news release. He forecast $100 million of annual cost synergies within the first two years post-closing.
The companies expect the deal to close during the first quarter of Take-Two's fiscal 2023, which ends on June 30, 2022.
The acquisition will put Take-Two on a more even footing with its two biggest rivals — Activision Blizzard (ATVI) and Electronic Arts (EA).
Mobile game publisher Playtika (PLTK) rose 6.1% to 17.87 on speculation that it could be the next acquisition target.
No comments:
Post a Comment