Take-Two buys Zynga in largest studio acquisition in history

Zynga is one of the best-known video game publishers in the mobile space, with classics like Farmville, Words With Friends, and more. Their repertoire in the mobile space must have piqued the interest of Take-Two Interactive as they acquired the company for $ 12.7 billion.

In a surprise announcement in a press release ( via Businesswire ), Zyna and Take-Two Interactive reported that “the two leaders in interactive and mobile entertainment today announced a definitive agreement under which Take-Two will acquire all of Zynga’s outstanding shares in a cash and stock transaction valued at $ 9,861 per Zynga share based on market close as of January 7, 2022, with a total enterprise value of approximately $ 12.7 billion. ”

It is the largest acquisition in the gaming industry ever, ranked second by Tencent’s $ 8.6 billion acquisition of Supercell in 2016 and Microsoft’s acquisition of Zenimax Media in 2020 for $ 8.1 billion.

Referring to the move, Take-Two CEO Strauss Zelnick said: “We are thrilled to announce our transformative deal with Zynga, which will significantly diversify our business and strengthen our leadership in the mobile segment, the fastest 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. Zynga also has a very talented and experienced team and we look forward to welcoming them to the Take-Two family in the coming months, ” he added .

According to Frank Guibault, CEO of Zynga, “Combining Zynga’s expertise in next-generation mobile devices and platforms with Take-Two’s best-in-class capabilities and intellectual property will further advance our mission of connecting the world through games, while achieving significant growth and synergy together. “

With such a large purchase from Take-Two, it will be interesting to see what the company has planned for the mobile developer. Time will tell, but whatever it is, it is likely to be big.