Gaming giant Take-Two has completed its $12.7 billion acquisition of Zynga, a game developer best known for its mobile online games like FarmVille and Words With Friends.
Take-Two announced the purchase of Zynga in January 2022, and last week, the stockholders of each company approved all proposals related to the merger. The deal got officially closed on May 23 – four months after the initial announcement, slightly ahead of the schedule.
The $12.7 billion deal is so far the largest acquisition in the gaming industry. It surpasses 2016's $8.6 billion Tencent deal to purchase Finnish mobile game developer Supercell. However, this record is set to be broken by Microsoft's planned purchase of Activision Blizzard for $68.7 billion.
Take-Two is also an owner of such gaming companies as Rockstar Games, Codemasters, and 2K, publishing Grand Theft Auto, Red Dead Redemption, and Bioshock. The acquisition of Zynga, which is best known for its mobile online games like FarmVille, Words With Friends, and Mafia Wars, will enable the company to strengthen its leadership position in the mobile market and diversify its business. With the new acquisition, Take-Two also plans to release games for smartphones and tablets over existing IPs.
Take-Two CEO Strauss Zelnick shared: "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."
"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," Zynga CEO Frank Gibeau added. "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."
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