Video games: Take-Two to buy Zynga, a $12.7 billion deal





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(Reuters) – U.S. video game publisher Take-Two Interactive Software is to buy mobile game specialist Zynga, creator of FarmVille among others, based on an overall valuation of nearly $12.7 billion ( 11.2 billion euros), debts included, announced the two groups on Monday.

Take-Two specifies that it will buy back all of the Zynga shares at a unit price of 9.86 dollars.

In pre-market trading on Wall Street, Zynga stock gained more than 40% to 8.89 dollars.

The price offered by Take-Two is 64.4% higher than Zynga’s closing price on Friday.

The purchase offer represents an amount of 11.04 billion dollars according to calculations by Reuters.

The operation, which Take-Two plans to pay in securities and cash, should be completed by the end of June.

(Report Nivedita Balu and Eva Mathews, French version Marc Angrand, edited by Blandine Hénault)









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