Nunavut Post

Saturday, January 29, 2022

Video game giant Take-Two purchases Farmville developer Zynga for $12B

Nunavut

Key takeaways: 

  • Console game director purchasing up a shorter competition with a win in mobile gaming.
  • Zynga creates famous cellphone-based games like Farmville and Words with Friends.

Grand Theft Auto and Red Dead Redemption are purchasing Zynga: 

Take-Two Interactive, the maker of Grand Theft Auto and Red Dead Redemption, is purchasing Zynga, creator of FarmVille and Words With Friends, in a cash-and-stock deal valued at around $12.7 billion.

The investment declared Monday would wed a powerhouse in console gaming, Take-Two, with a mobile gaming firm with a nearly cult-like following.

Zynga shareholders will accept $3.50 in cash and $6.36 in shares of Take-Two common stock for a per-share of Zynga outstanding stock at the close. 

The dealing is valued at $9.86 per share of Zynga common stock.

“This strategic blend 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 stated in a ready statement. He will have those roles when the firms become one. Source – cbc.ca

Also read: Grocers pressured to get back ‘hero pay’ amongst Omicron rise

Video Game giant Take Two purchases Farmville creator Zynga

Take-Two expects the agreement will assist bring around mobile versions of some of its console and individual computer-based matches.

Take-Two stated Monday it expects about $100 million US in annual cost protection within the first two years after the dealing is done.

Zynga CEO Frank Gibeau and its president of publishing, Bernard Kim, will oversee the integration and day-to-day functions of the united Zynga and T2 Mobile Games business, which will work under the Zynga brand as its label within the Take-Two.

Take-Two will also develop its board to 10 members upon close, adding two members from Zynga’s board.

The dealing includes a go-shop provision, providing Zynga with 45 days to hear alternative suggestions. 

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