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 with an enterprise value of about $12.7 billion (about Rs 94,030 crore). ,
Take-Two on Monday said it anticipates $100 million (about Rs 740 crore) in annual cost savings.
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.
Shares of San Francisco-based Zynga jumped 52 percent to $9.14 (about Rs 680). Shares of New York City-based Take-Two Interactive Software fell more than 8 per cent to $150.66 (about Rs 11,160).
“Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property allows us to simultaneously achieve significant growth and synergy through games,” it said in a statement. Will enable us to pursue our mission of connecting the world.” On the announcement from Take-Two Interactive.
The company said the transaction is expected to establish Take-Two as a leader in mobile gaming, with mobile expected to comprise more than 50 percent of its net bookings in FY2023 (FY2022). compared to the estimated 12 percent in
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