Zynga (ZNGA) to be acquired by Take-Two Interactive Software (TTWO) $12.7 billion

 

 

 

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.

=Take-Two (TTWO) reported earnings on Wed 6 Feb 2019 (b/o)

Take-Two beats by $1.05, beats on revs; guides Q4 EPS, revs below consensus

• Reports Q3 (Dec) GAAP earnings of $1.57 per share, $1.05 better than the S&P Capital IQ GAAP Consensus of $0.52; revenues rose 139.9% year/year to $1.57 bln vs the $1.5 bln S&P Capital IQ Consensus.
  • Net Bookings from recurrent consumer spending grew 31% and accounted for 22% of total Net Bookings. The largest contributors to Net Bookings in fiscal third quarter 2019 were Red Dead Redemption 2, NBA 2K19, Grand Theft Auto Online and Grand Theft Auto V, WWE 2K19 and WWE SuperCard, Dragon City and Monster Legends, and Sid Meier's Civilization VI.
• To date, Red Dead Redemption 2 has sold-in more than 23 million units worldwide. 
• Co issues downside guidance for Q4, sees GAAP EPS of $0.67-0.77 vs. $0.82 S&P Capital IQ GAAP Consensus; sees Q4 revs of $450-500 mln vs. $608.96 mln S&P Capital IQ Consensus.

Earnings this week : Feb. 4 - 8, 2019 (wk 6)

Earnings expected this week:

Monday (Feb 4)

• Morning: ALXN CLX ON SYY
• Afternoon: AVB FN GILD GOOG GLUU HIG LM STX

Tuesday (Feb 5)

• Morning: ADM AME ARMK BDX CHD CNC EL EMR ENR INGR IT LII LITE RL 
• Afternoon: ALL APC APU CB CERN DATA DIS DOX  EA MANH  MCHP MODN  MTSI MYGN MXL OI  PAA  PAYC SAVE SCSC  SFLY   SNAP SWKS TCS  TENB ULTI USNA VNOM VRTX ZEN

Wednesday (Feb 6)

• Morning:  ABG BSX BCO CSTE CPRI CTSH CMI ELAN FDC FDV GM HUM LLY  NYT REGN  SPOT TRVG  TTWO 
• Afternoon: ACLS AEL AHL AINV AOSL BLKB CCK CCMP CDAY CENT CINF CMG CSGS CUB CUZ DHT ECHO EGP ELY ENS ENSG FEYE FLO FLT FORM FTNT GBDC GPRO HQY ICHR IRBT KNL LCI LNC MC MET MTCH MTRX NEWR NOV NTGR NTR NXPI ORLY OSUR PAHC PCTY PRU PSDO PSEC RGLD RYN SONO TRMB TTGT TTMI TWO UHAL VVV WERN ZNGA

Wed pm/Thur am (vol) https://finviz.com/screener.ashx?v=211&t=ACLS,AEL,AHL,AINV,AOSL,BLKB,CCK,CCMP,CDAY,CENT,CINF,CMG,CSGS,CUB,CUZ,DHT,ECHO,EGP,ELY,ENS,ENSG,FEYE,FLO,FLT,FORM,FTNT,GBDC,GPRO,HQY,ICHR,IRBT,KNL,LCI,LNC,MC,MET,MTCH,MTRX,NEWR,NOV,NTGR,NTR,NXPI,ORLY,OSUR,PAHC,PCTY,PRU,PSDO,PSEC,RGLD,RYN,SONO,TRMB,TTGT,TTMI,TWO,UHAL,VVV,WERN,ZNGA,ADNT,ADS,AMAG,ANDX,ARW,BCE,BR,BSIG,BV,CAH,CDW,CEIX,CNHI,COR,DNKN,DTE,EIGI,EPC,FCAU,GRA,GRUB,HAIN,HBI,ICE,K,LABL,LCII,LH,MAC,MAS,MD,MMS,MPC,MPLX,MPW,ODFL,PAG,PBH,PENN,PM,PRLB,PTEN,SEE,SNA,SNY,SPB,SPGI,TGI,TKR,TMUS,TPR,TSN,TWTR,VIRT,VSTO,WLTW,WMS,WWE,YUM&ta=0&o=-volume

Thursday (Feb 7)

• Morning: ADNT ADS AMAG ANDX ARW BCE BR BSIG BV CAH CDW CEIX CNHI COR DNKN DTE EIGI EPC FCAU GRA GRUB HAIN HBI ICE K LABL LCII LH MAC MAS MD MMS MPC MPLX MPW ODFL PAG PBH PENN PM PRLB PTEN SEE SNA SNY SPB SPGI TGI TKR TMUS TPR TSN TWTR VIRT VSTO WLTW WMS WWE YUM
• Afternoon: ATEN ATGE ALNY ASYS ANGI MT ATHN BECN BHE BKH CARB CSL CBL CCS COLM OFC DXC EGAN EHC ESE EEFT EXPE FISV FSCT FTV FET FWRD G HUBG IAC KN LGND MTW MCFT MAT MTD MOBL MHK MSI NCR UEPS NR NWSA NUAN OMCL CNXN PMT POWI PRI PRO QRVO QNST RPD RSG SGEN SKX SWI SYNA TDC TBI USX VRSN VVI VSAT VRTU VCRA WTS WU ZAYO 

Friday (Feb 8)

• Morning: ARNC AVA BPL CAE CBOE CLF COTY ESNT EXC GT GRC EAF HAS IMGN PCG PSX  PSXP RDN UNVR VTR 

=Take-Two (TTWO) reported earnings on Wed 2 Nov 2016 (a/h)

Take-Two beats by $0.15, beats on revs; guides Q3 EPS below consensus, revs below consensus; reaffirms FY17 EPS, revs guidance  :

• Reports Q2 (Sep) earnings of $0.45 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.30; revenues rose 21.1% year/year to $420.17 mln vs the $402.47 mln Capital IQ Consensus.
• During fiscal second quarter 2017, total bookings, which represents the total amount billed by the Company from sales of physical product sold-in to retail and available to consumers, net of allowances, plus product digitally-delivered to consumers during the period, grew 28% to $452.8 million, as compared to $353.0 million during fiscal second quarter 2016.
• Co issues downside guidance for Q3, sees EPS of $0.30-0.40 vs. $1.05 Capital IQ Consensus Estimate; sees Q3 revs of $475-525 mln vs. $649.59 mln Capital IQ Consensus Estimate; sees bookings of $650-700 mln
• Co reaffirms guidance for FY17, sees EPS of $2.00-2.25 vs. $1.26 Capital IQ Consensus Estimate; sees FY17 revs of $1.75-1.85 bln vs. $1.64 bln Capital IQ Consensus Estimate; sees booking of $1.6-1.7 bln (Prior $1.5-1.6 bln)
• "Looking ahead, fiscal 2018 is poised to be another strong year for our Company. We expect to grow both bookings and net cash provided by operating activities driven by our release slate led by Rockstar Games' highly anticipated launch of Red Dead Redemption 2."

Q : What's a better buy - DELL or TTWO?

4/15/11: Check your email for answer & charts.