Push Admin

Take-Two to buy Farmville creator Zynga for $12.7-B

Article (news)

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt=" In an aerial view, a sign in posted in front of the Zynga headquarters on January 10, 2022 in San Francisco, California. Take-Two Interactive, maker of the Grand Theft Auto video game, announced plans to purchase mobile gaming company Zynga for $12.7 billion. Zynga is the maker of the popular video game FarmVille. Justin Sullivan/Getty Images/AFP" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/afp/01/11/zynga.jpg"/><figcaption> In an aerial view, a sign in posted in front of the Zynga headquarters on January 10, 2022 in San Francisco, California. Take-Two Interactive, maker of the Grand Theft Auto video game, announced plans to purchase mobile gaming company Zynga for $12.7 billion. Zynga is the maker of the popular video game FarmVille. Justin Sullivan/Getty Images/AFP</figcaption></figure></div> NEW YORK - Video game publisher Take-Two announced Monday it reached a deal to acquire &quot;Farmville&quot; creator Zynga for $12.7 billion, in a major mobile gaming push by the maker of &quot;Grand Theft Auto.&quot;The merger brings Take-Two, a leader in console and personal computing games, together with a company with strength in interactive games played on mobile devices, such as &quot;Farmville,&quot; which first became a phenomenon in the 2010s on Facebook.The deal comes as Take-Two plans more smart phone versions of its games, which also include Red Dead Redemption and NBA2K.The transaction also is designed to promote Take-Two&#x27;s growth outside of its core markets in the United States and Western Europe. Take-Two officials emphasized that Zynga has a presence in more than 175 countries.Zynga&#x27;s games are generally free to play and the company generates revenues through the sale of in-game virtual items and advertising.&quot;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,&quot; Take-Two Chief Executive Strauss Zelnick said in a statement.Zelnick, in a conference call with analysts, highlighted Zynga&#x27;s expertise in &quot;free-to-play&quot; games which could allow for greater growth in India, parts of Latin America and the Middle East.&quot;We basically have 80 percent of the world&#x27;s geography that is greenfield opportunity for us,&quot; Zelnick said. &quot;Large parts of that geography really is driven by free-to-play and that&#x27;s where Zynga&#x27;s expertise lies.&quot;The transaction prices Zynga at $9.86 per share, a 64 percent premium on Friday&#x27;s share price.About one-third of the payment will be in cash and the rest in Take-Two shares.Zelnick is set to lead the combined company, with Zynga&#x27;s team led by Chief Executive Frank Gibeau and Bernard Kim, president of publishing, overseeing the combined company&#x27;s mobile gaming efforts.New York-based Take-Two had revenues of $3.4 billion at the end of its last fiscal year and just shy of 5,100 employees. San Francisco-based Zynga had revenues of $2.0 billion and about 3,000 employees.The deal includes a &quot;go shop&quot; provision that allows Zynga and its representatives to solicit and receive alternative bids for 45 days. The transaction is expected to close in the spring of 2022, the companies said.Zynga shares soared 44.6 percent on the Nasdaq to $8.68 early Monday, while shares of Take-Two fell by 14.6 percent to $140.65.<div>dho-jmb/mlm</div><div>© Agence France-Presse</div>

Video game publisher Take-Two announced Monday is acquiring 'Farmville' creator Zynga for $12.7 billion, in a major mobile gaming push by the maker of 'Grand Theft Auto.'