GTA parent company Take-Two acquires FarmVille maker Zynga for $12.7 billion
That was a massive check to write.
Take-Two Interactive is bringing mobile gaming company Zynga into the fold.
The acquisition is worth $12.7 billion and the company is buying the FarmVille developer with both cash and stock.
It was announced the company would buy all shares of Zynga at $9.86 apiece which caused Zynga stock to surge 40% and Take-Two's to decline by 13%.
This combination unifies two rather large interactive entertainment companies, as both have created and expanded popular franchises. Take-Two’s labels are well-known, while Zynga’s portfolio includes popular mobile titles such as FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Words With Friends, and Zynga Poker among others.
Zynga recently released FarmVille 3, the third outing since the franchise's initial release in 2009. The first game was originally released on Facebook and was a huge success with social media users.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest-growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman, and CEO of Take-Two.
“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. Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months.
Take-Two said it expects the deal to help in the creation of new mobile games for many of the iconic franchises within the company's portfolio as well as new cross-platform experiences for many of these properties. Zynga’s nearly 3,000 employees will help pave the way for Take-Two to "accelerate this strategic initiative" and introduce its intellectual properties across mobile, which it calls the "fastest-growing platform in the industry."