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Tuesday, March 28, 2023

Grand Theft Auto maker buys FarmVille for $12.7 billion

Take-Two Interactive, maker of Grand Theft Auto and Red Dead Redemption, is buying Zynga, maker of FarmVille and Words With Friends, in a cash and stock deal worth about $12.7 billion.

The acquisition, announced on Monday, will merge console gaming company Take-Two with a mobile gaming company with a near-cult following.

Zynga shareholders will receive $3.50 in cash and $6.36 in Take-Two common stock for each Zynga share outstanding at the close of trading. The deal is valued at $9.86 per Zynga common share.

“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 Chairman and CEO Strauss Zelnick said in a prepared report. statement. He will retain these roles when the companies become one.

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Take-Two expects the deal will help create mobile versions of some games for consoles and personal computers.

Take-Two said on Monday it expects about $100 million in annual cost savings over the first two years after the deal closes.

Zynga CEO Frank Guibaut and its president of publishing Bernard Kim will oversee the integration and day-to-day operations of the combined Zynga and T2 mobile games business, which will operate under the Zynga brand as its own label under Take-Two. .

Take-Two will also expand its board to 10 members after the closing, adding two members from Zynga’s board of directors.

The deal includes a move-to-store clause that gives Zynga 45 days to consider alternative offers.

The deal is expected to close during the first quarter of Take-Two’s fiscal year 2023 ending June 30th. It still needs approval from Take-Two and Zynga shareholders. He received the approval of the boards of directors of both companies.

Shares of San Francisco-based Zynga Inc. jumped 52.5 percent to $9.15. Shares of New York-based Take-Two Interactive Software, Inc. fell 8.7% to $150.25.

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World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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