Gaming company Take-Two Interactive boosted its mobile credentials through a deal to acquire developer Zynga for a total enterprise value of $12.7 billion.
Take-Two Interactive stated it will acquire all outstanding Zynga shares for $9.86 each, representing a 64 per cent premium on its closing share price on 7 January.
The acquirer is behind major game franchises Grand Theft Auto and Red Dead Redemption.
Take-Two Interactive expects approximately $100 million of annual cost synergies within the first two years of closing and also identified more than $500 million of incremental annual net booking opportunities to unlock over time through the creation of new mobile games using its IP, in addition to other strategic plays.
The company positioned the deal as a combination of two global leaders in the interactive entertainment business. Zynga’s portfolio includes FarmVille, CRS Racing and Golf Rival.
Take-Two Interactive also talked up the potential of mobile gaming as a whole, stating it was the “fastest growing segment” within the industry. Chairman and CEO Strauss Zelnick said the deal helped establish a “leadership position in mobile”.
The deal is expected to close later this year.Subscribe to our daily newsletter Back