In a January 7th, 2022 press release, Take-Two announced it would be acquiring Zynga, making it a force to reckon with in the gaming industry. If all goes well, the mega transaction will close by the first quarter of 2023.
More on the Numbers
The shares will go for $9.861 ($6.36 billion in stock and $3.50 in cash), totaling $12.7 billion.
Take-Two is optimistic that the subsequent Pro-forma net bookings ending September 30th, 2021, will read $6.1 billion.
As its operations go large scale, its annual net booking will amount to $500 million. In addition, annual cost synergies will be about $100 million for the first two years.
Strauss Zelnick, the interactive game publisher’s CEO, hopes that the move will propel it to greater heights in the mobile gaming segment. As a matter of fact, phone manufacturers have caught on to the craze, and are now building top-of-the-range gadgets.
As the market continues to grow, it will account for 50% of Take-Two’s revenue.
In addition, he mentioned that his company was looking forward to welcoming Zynga’s experienced team on board.
Good News for Zynga
Things have been tough for Zynga since it went public with its share prices plummeting in the last 12 months. Also, Facebook cut off the company’s biggest audience after deeming its posts spammy.
Joining forces with Take-Two will do wonders for the organization, opening up opportunities for franchising and initial public offers.