Take-Two Interactive, maker of Grand Theft Auto and Red Dead Redemption, is acquiring Zynga, maker of FarmVille and Words With Friends, in a cash-and-stock deal valued at approximately $ 12.7 billion. 94,030 billion rupees). .
Zynga shareholders will receive US $ 3.50 (approximately Rs. 260) in cash and US $ 6.36 (approximately Rs. 470) in Take Two common shares for each outstanding share of Zynga on closing.
Take-Two said Monday it expects annual cost savings of $ 100 million (about 740 billion rupees).
The transaction is expected to close in Take-Two’s first quarter of fiscal year 2023, ending June 30. The approval of the Take-Two and Zynga shareholders is still required.
San Francisco-based Zynga shares rose 52 percent to $ 9.14 (approximately rupees 680). New York City-based Take-Two Interactive Software’s shares fell more than 8 percent to $ 150.66 (approximately Rs 11,160).
“The combination of Zynga’s expertise in next-generation mobile and platforms with the industry-leading capabilities and intellectual property of Take-Two will allow us to continue our mission of connecting the world through games while delivering significant growth and synergies to achieve, “it said in a statement by Take-Two Interactive about the announcement.
The company said the transaction aims to establish Take-Two as the leader in mobile gaming, with mobile expected to account for over 50 percent of its net bookings in FY 2023 (compared to an estimated 12 percent in fiscal 2022).
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