2022 kicks off with Take-Two Interactive acquiring Zynga
The New York-based software game publisher and creator revealed that it would buy the mobile gaming company Zynga with a mix of cash and stock, totaling $12.7 billion. Take-Two Interactive will acquire all outstanding shares at $9.86 apiece, a 64% premium to Zynga’s closing price Friday, January 7, 2022.
Out of this deal, Zynga shareholders will get $3.50 in cash and $6.36 in Take-Two stock for every outstanding Zynga share. The agreement must pass regulatory and shareholder approvals and to be closed by June 30, 2022.
Zynga, best known for its FarmVille series, boomed on Facebook, at one point being the most successful app developer on the social media platform. Over the years, the company has shifted direction towards the mobile market, looking to capitalize on the growth of the smartphone era.
Take-Two, famous for Grand Theft Auto, is hoping to tap into the mobile gaming industry with Zynga, a sector that accounts for more than half of the video game industry.
After the announcement, Zynga’s stock price jumped 48.2%.