Picture: 123RF/DEAN DROBOT
Picture: 123RF/DEAN DROBOT

Take-Two Interactive is buying mobile games specialist Zynga in an $11.04bn deal, the  Grand Theft Auto  maker said on Monday, as it looks to tap into a surge in on-the-go gaming on smartphones.

Take-Two, also known for  Red Dead Redemption, offered $9.86 per share, representing a 64% premium to the last closing price of Zynga. Zynga’s shares rose about 50% in trading before the bell, while those of Take-Two fell nearly 9%.

The deal follows Electronic Arts’s $2.4bn acquisition of Glu Mobile in 2021 as game studios look to build their mobile portfolios.

Many consumers, who were glued to their consoles during the peak of the pandemic, have now shifted to mobile gaming.

“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 CEO Strauss Zelnick said in a statement.

The equity value of the deal is $11.04bn, according to Reuters calculations. Including debt, the deal is worth $12.7bn.

Take-Two has received financing of $2.7bn from JPMorgan and intends to fund the rest with cash from its balance sheet and proceeds of new debt issuance.

Take-Two expects about $100m in annual cost savings within the first two years after completion, and more than $500m in adjusted revenue over time.

Reuters 

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