Video game software group Take-Two Interactive has announced that it has finished its purchase of developer Zynga for $12.7 billion, the second-largest transaction in the gaming industry.
Zynga is a mobile developer that famously dipped its toes into the online gambling market, first as a social operator and then as a real-money group. The real-money enterprise wasn't terribly profitable for Zynga, but the company's social betting construct has been a lasting money maker for the company.
Take-Two is a video game developer, known for its umbrella of studios Rockstar and 2K Games, which put out the popular Grand Theft Auto and NBA 2K series of games respectively. The company is interested in making headway in the mobile gaming space, due to the large number of capable devices in player hands throughout the globe.
Take-Two paid out $3.50 in cash plus 0.0406 shares in its own company for every Zynga share.
Take-Two Interactive CEO Strauss Zelnick commented on the deal, noting: "We are thrilled to complete our combination with Zynga, which is a pivotal step to increase exponentially our net bookings from mobile, the fastest-growing segment in interactive entertainment, while also providing us with substantial cost synergies and revenue opportunities. As we bring together our exceptional talent, exciting pipelines of games, and industry-leading technologies and capabilities, we believe that we can take our portfolio to another level of creativity, innovation, and quality.
"Each of our teams has a strong history of operational execution, and together, we expect that we will enhance our financial profile through greater scale and profitability, paving the way for us to deliver strong shareholder value."
Zynga CEO Frank Gibeau added: "We are excited for Zynga's next-generation mobile platform, free-to-play expertise, diverse offering of games and incredible team to join the Take-Two family. We are eager to continue building an unparalleled portfolio of games that will reach broader markets and lead to continued growth for this next chapter of Zynga's history."