Take-Two announces a massive $12.7 billion acquisition of Zynga
Take-Two sees a "clear path" to bring established franchises to mobile.
This morning, publishing giant Take-Two Interactive announced their $12.7 billion purchase of mobile game developer Zynga.
The deal adds to Take-Two’s roster of industry-leading studios, including 2K, Rockstar and Private Division. In addition, acquiring Zynga also gives Take-Two a significant edge in the fast-growing mobile gaming market. It’s worth noting, however, that a 45-day “go-shop” provision delays the deal’s finalization. The provision allows Zynga time to look for a better deal with a different company. This provision previously denied Take-Two’s prospective acquisition of Codemasters when EA offered a better deal.
Take-Two Interactive and Zynga plan a bright future
Regardless, Take-Two remains optimistic about the company’s future in mobile gaming. In a news release, Take-Two elaborates their goals to emphasize mobile IPs and also bring established franchises to the medium. In addition, they add that through Zynga, Take-Two will derive over half of its future revenue through mobile games.
We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fasted growing segment of the interactive entertainment industry. 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.
Strauss Zelnick, Take-Two CEO
Zynga CEO Frank Gibeau also feels optimistic to the company’s new partnership with Take-Two. Gibeau elaborates by adding the company sees a bright future to enhance production and bring their games to a wider audience. In addition, Gibeau states the deal will benefit shareholders and bring additional value to the company.
With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.
Frank Gibeau, Zynga CEO
How do you think Take-Two’s acquisition of Zynga will impact the future of mobile gaming? Let us know below!
via Gamespot
