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    Take-Two Interactive Buys Farm Ville Creator Zynga for $ 12.7 Billion

    Signboard for Zynga headquarters in San Francisco, California, USA on Wednesday, August 4, 2021. Zynga Inc. Will announce earnings figures on August 5th.

    David Paul Morris | Bloomberg | Getty Images

    Take to interactive Acquiring a mobile game company Zinga The combined cash and stock of $ 12.7 billion marks the latest blockbuster acquisition in a series of major transactions in the video gaming industry.

    The company announced on Monday that it would acquire all of Zynga’s outstanding shares for $ 9.86 per share. This is a 64% premium on Friday’s Zynga closing price. Zynga’s share has skyrocketed by more than 50% in pre-market trading in the United States.

    According to Take-Two, Zynga shareholders will receive $ 3.50 in cash and $ 6.36 in Take-Two shares for each Zynga issued share upon completion of the transaction. The transaction, which requires regulatory and shareholder approval, is expected to be completed by June 30, 2022.

    “This strategic combination integrates a best-in-class console and PC franchise with a variety of market-leading mobile publishing platforms with a rich history of innovation and creativity,” said Take-Two CEO Strauss Zelnick. It states as follows. Press release..

    Zynga, best known for its mobile game title Farm Ville series, was initially FacebookAt one point, I became the most successful app developer on the platform. Since then, Zynga has focused on mobile, hoping to take advantage of the explosive growth of the smartphone era.

    The company was seen as a major beneficiary of the home-based trend brought about by Covid-19, but its share price has fallen by nearly 38% over the past year, and some investors have experienced a pandemic game boom. I’m wondering if I’ve been in the semester for a long time.

    FarmVille is Zynga’s most famous game, but it also publishes some notable titles such as CSR Racing, Empires & Puzzles, and Harry Potter: Puzzles & Spells. It is based on Warner Bros. Harry Potter series.

    Known for Grand Theft Auto and other blockbuster consoles and PC franchises, Take Two wants to take advantage of the continued growth of mobile games, which account for more than half of the video gaming industry as a whole.

    Take-Two, which reported $ 6.1 billion in net bookings for the 12 months to September 30, 2021, predicts that mobile will account for more than 50% of net bookings for the coming year, 12% in 2022. It says that it will increase from.

    The deal will generate $ 100 million in annual cost synergies within the first two years of the deal, with a net booking of at least $ 500 million expected in the long run, Strauss said.

    The deal follows a series of integration efforts in the $ 180 billion video gaming industry.

    Microsoft I bought BethesdaThe company behind the Fallout and The Elder Scrolls franchise will be $ 7.5 billion in 2020, and Electronic Arts Acquired British racing game developer Codemasters For $ 1.2 billion later that year.

    In 2021, Tencent announced a deal to buy British game studio Sumo Group, And Turtle Rock Studios, the creator of the US-based zombie game Back 4 Blood.

    Take-Two Interactive Buys Farm Ville Creator Zynga for $ 12.7 Billion

    Source link Take-Two Interactive Buys Farm Ville Creator Zynga for $ 12.7 Billion

    The post Take-Two Interactive Buys Farm Ville Creator Zynga for $ 12.7 Billion appeared first on Eminetra.

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