Grand Theft Auto maker Take-Two will pay $9.86 per share for Zynga in a deal that values the social gaming group at around $12.7 billion.
Take-Two Interactive (TTWO) – Get Take-Two Interactive Software, Inc. Report said Monday it will buy Zynga (ZNGA) – Get Zynga Inc. Class A Report in a $12.7 billion deal that combines the maker of video game hits such as Grand Theft Auto and NBA 2k with the leading developer of mobile and social gaming network platforms.
The all-stock deal values Zynga at $9.68 per share, the companies said, and pegs the San Francisco-based group’s enterprise value at around $12.7 billion. Take-Two will pay $3.50 in cash and $6.36 in Take-Two common stock for each Zynga share, the companies said.
Take-Two CEO Strauss Zelnick will lead the combined group once the deal is closed, which the pair anticipate will be in the second half of this calendar year.
Stocks Mixed, Inflation, Bitcoin, Reddit and Novak Djokovic – Five Things You Must Know
“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 Zelnick. “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.”
“As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time,” he added.
Zynga shares soared more than 46.5% in pre-market trading immediately following news of the deal to indicate an opening bell price of $8.80 each.
Take-Two shares, meanwhile, were marked 10.03% lower at $148.10 each.
