Grand Theft Auto in Farmville after $12.7B gaming deal

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Take-Two Interactive, makers of Grand Theft Auto and Red Dead Redemption, is buying Zynga, makers of FarmVille and Words With Friends, in a cash and stock deal worth about $12.7 billion.

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Take-Two Interactive, makers of “Grand Theft Auto” and “Red Dead Redemption,” is buying Zynga, makers of “FarmVille” and “Words with Friends,” in a cash and stock deal worth about $12.7 billion.

The acquisition announced Monday built a powerhouse in console gaming, Take-Two, with a mobile gaming company with an almost cult-like following.

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Zynga shareholders will receive $3.50 in cash and $6.36 in shares of take-two common stock for each share of Zynga outstanding stock at closing. The transaction value is $9.86 per share of Zynga common stock.

“This strategic combination brings together our best-in-class console and PC franchises with a market-leading, diverse mobile publishing platform that has a rich history of innovation and creativity,” said Take-Two Chairman and CEO Strauss Zelnick. Statement. He will retain those roles once the companies merge.

Take-Two anticipates that the deal will help bring mobile versions of some of its console and personal computer-based games.

Take-Two said Monday that it anticipates about $100 million in annual cost savings within the first two years after the transaction is completed.

Zynga CEO Frank Gibeau and its President of Publishing, Bernard Kim, will oversee the integration and day-to-day operations of the combined Zynga and T2 mobile games business as their own label within Take-Two under the Zynga brand. will work in ,

Take-Two will also expand its board to 10 members when it closes, adding two members to Zynga’s board.

The transaction includes a go-shop provision, giving Zynga 45 days to hear alternative offers.

The deal is expected to close during the first quarter of Take-Two’s fiscal 2023, ending June 30. It still requires approval from both Take-Two and Zynga stockholders. It has been approved by the boards of both the companies.

Shares of San Francisco-based Zynga Inc. jumped 52.5% to $9.15. Take-Two Interactive Software, Inc., based in New York City. shares fell 8.7% to $150.25.

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