Take-Two Interactive to Buy Zynga for $12.7 Billion

Gaming group Take-Two Interactive has announced that they've come to terms to purchase social gaming group Zynga for $12.7 billion in cash and shares.

Take-Two is known as a popular video game publisher that owns Rockstar Gaming, the company that develops the popular Grand Theft Auto game. Zynga is a mobile game developer and has dipped its toes into the online gambling market, having launched a series of games, a social casino, and at one time a real-money site.

The deal will see Zynga shareholders being paid $3.50 in cash and $6.36 in Take-Two shares for every one share of outstanding Zynga stock. Take-Two is financing the deal through JPMorgan. The agreement will help push Take-Two further into the mobile market, generating millions in revenue.

Zynga is known for bringing in lots of revenue but has regularly posted losses related to the operation of its business. The companies claim that synergies will cut down those costs and make Zynga viable for the long term.

Regarding the deal Take-Two CEO Strauss Zelnick said, "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 highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months."

Zynga CEO Frank Gibeau added: "Combining Zynga's expertise in mobile and next-generation platforms with Take-Two's best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together.

"We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.

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