Take-Two Interactive, maker of Grand Theft Auto and Red Dead Redemption, is buying Zynga, maker of FarmVille and Words With Friends, in a cash-and-stock deal with an enterprise value of approximately $12.7 billion (approximately Rs. 94,030 crore). ).
Zynga’s shareholders will receive $3.50 (approximately Rs. 260) in cash and $6.36 (approximately Rs. 470) in Take-Two common stock for each share of Zynga’s outstanding stock at closing.
Take-Two said Monday it expects $100 million (about Rs. 740 crore) in annual cost savings.
The deal is expected to close in the first quarter of Take-Two’s fiscal 2023, ending June 30. It has yet to be approved by both Take-Two and Zynga shareholders.
Shares of San Francisco-based Zynga rose 52 percent to $9.14 (about Rs. 680). Shares of New York City-based Take-Two Interactive Software fell more than 8 percent to $150.66 (approximately Rs. 11,160).
“By combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property, we can further advance our mission to connect the world through games and drive significant growth and growth together. realize synergies,” said a statement. from Take-Two Interactive on the announcement.
The company said the transaction is expected to establish Take-Two as a leader in mobile gaming, with mobile expected to make up more than 50 percent of its net bookings in FY 2023 (compared to an estimated 12 percent in fiscal 2022).
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