The video game company Take-Two Interactive, known for “Grand Theft Auto”, “NBA 2K” and “Red Dead Redemption”, announced on Monday that it had the mobile gaming company Zynga as part of a blockbuster deal for 12.7 Billion dollar buys, dating one of the largest acquisitions in the business.
Take-Two announced it will acquire all of its outstanding Zynga shares for $ 9.86 per share in a cash-and-stock deal, a premium of more than 60% over Zynga’s closing price last Friday.
Zynga’s shares rose 40% on the news, while Take-Two’s shares fell nearly 14%.
Zynga, which slumped 35% in 2021, is known for its popular mobile games like Farmville, CSR Racing and Words With Friends.
The $ 12.7 billion blockbuster is a natural move for Take-Two to continue building their position in the fast-growing mobile games segment, where consumer spending has increased over the past few years compared to console and computer games .
Zynga co-founder Mark Pincus saw his net worth jump more than $ 150 million on the news Monday, bringing his total net worth to around $ 1.5 billion Forbes‘Estimates.
The transaction, which still requires regulatory and shareholder approval, is expected to be completed by June 30, 2022.