(Boursier.com) – Take -Two Interactive announced on Monday its intention to acquire Zynga, the creator of FarmVille, for $ 9.86 a share, a 64% premium over Zynga’s closing price on Friday. The amount of the deal thus amounts to $ 12.7 billion.
Zynga stock jumped 40.6% to $ 8.44 Monday night on Wall Street after the offer, but Take-Two’s stock ended down 13.1% to $ 142.99. “This strategic combination brings together our best franchises for consoles and PC, with a diverse and market-leading mobile publishing platform that has a rich history of innovation and creativity,” said Strauss Zelnick, CEO of Take-Two, in a press release.
Take-Two will acquire all of the outstanding shares of Zynga for a total value of $ 9.861 per share – $ 3.50 in cash and $ 6.361 in common shares of Take-Two, implying an enterprise value of 12, $ 7 billion. The deal represents a 64% premium over the closing Zynga share price on January 7, 2022. It establishes Take-Two as one of the world’s largest mobile game publishers, the fastest growing segment in the world. interactive entertainment industry.
The transaction also unites highly complementary businesses, including Take-Two’s best-in-class portfolio of console and PC games, and Zynga’s industry-leading mobile franchises. It creates one of the largest publicly traded interactive entertainment companies in the world, with $ 6.1 billion in pro forma twelve-month net bookings for the period ended September 30, 2021. The transaction is expected to generate approximately $ 100 million. dollars in annual cost synergies in the first two years following closing, and over $ 500 million in annual net bookings opportunities.
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