Mobile giant joins Take-Two portfolio
In a clash of the titans, publisher Take-Two Interactive has announced that it has acquired Zynga, purchasing the mobile/social gaming giant in an eye-widening sale reportedly in the region of $12.7 billion USD.
Take-Two, whose impressive portfolio already boasts studios such as Rockstar Games, 2K Games, and all respective subsidiaries, brands, and IPs, purchased all remaining Zynga shares, (at approximately $10 per share), to acquire majority shareholder ownership of the studio. Zynga is renowned for its highly lucrative free-to-play mobile/online games such as FarmVille, Merge Dragons, and several licensed titles featuring brands such as Tony Hawk, Harry Potter, and Tomb Raider.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest-growing segment of the interactive entertainment industry,” said Take-Two CEO Strauss Zelnick in a press release. “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.”
Zynga is expected to continue operations as its own brand under Take-Two, though the umbrella company is expected to work with Zynga to produce new games based on the Take-Two IP catalog. In addition, two members of Zynga’s executive team are expected to join Take-Two’s board of directors.
Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together,” said Zynga CEO Frank Gibeau. “We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders.”
The acquisition sees two of the industry’s major money makers combine forces to make something of a terrifying super-corporation. With Zynga now having access to brands such as Grand Theft Auto, Red Dead Redemption, BioShock, and the 2K Sports portfolio, one can only assume that a litany of incoming F2P titles will only see the coffers of both companies increase further.
The deal is expected to close at the end of Take-Two’s first 2023 fiscal quarter: June 30, 2022.
