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Take-Two Interactive to Acquire Zynga for $12.7 Billion

Take-Two Interactive to Acquire Zynga for $12.7 Billion - News

by William D'Angelo , posted on 10 January 2022 / 2,002 Views

Take-Two Interactive announced it will acquire Zynga in a deal valued at $12.7 billion. Take-Two is will acquire all outstanding shares of Zynga for $9.86 per share, which is a 64 percent premium to the closing price of the shares on January 7, 2022. 

The acquisition is expected to be completed during the first quarter of Take-Two's fiscal year 2023, which ends June 30, 2022. This is subject to approval from Take-Two and Zynga stockholder, as well as applicable regulatory approvals.

"We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry," said Take-Two Interactive chairman and CEO Strauss Zelnick.

"This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity. Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months.

"As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time."

Zynga CEO Frank Gibeau added, "Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together. I am proud of our team’s hard work to deliver a strong finish to 2021, with one of the best performances in Zynga’s history.

"We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming."


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.


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23 Comments
aTokenYeti (on 10 January 2022)

This is more than Microsoft paid for Mojang and Zenimax combined, really goes to show how big of the revenue cut of the pie mobile games are getting these days

  • +7
DonFerrari (on 10 January 2022)

Zynga makes the type of game I would prefer Sony doesn`t approach, so T2 buying them is good =p

  • +5
Blood_Tears DonFerrari (on 10 January 2022)

I agree as well that I wouldn't want Sony to approach these kinds of games. However, seeing a smaller company like Take Two with an acquisition of this size makes me wonder why Sony doesn't take more risks like this. They were outbid by Tencent of 1.5B from their offer of 1.3B when it came to the Leyou acquisition. They wouldn't counter that offer but instead give Epic 450M for maybe 2% of the company. I can never predict what Sony is going to do, they're like Atlus for me sometimes. lol

  • 0
Azzanation Blood_Tears (on 10 January 2022)

Because buying a company is only a fraction of the price. Operating costs, future revenue gain, profits etc. Maybe Sony didnt see a marginable profit and decided the price was too high and it would take too long to make back thier money. Its not just a bidding war. Same for MS, they dont just buy all independent companies. They strategically buy.

  • +3
DonFerrari Blood_Tears (on 10 January 2022)

I wasnt aware of this bid for Leyou, do you have source for me to read? Sony could likely pay for Zynga but I dont think it align with Playstation objectives.

  • 0
Blood_Tears DonFerrari (on 10 January 2022)

A quick google search gave me this URL
https://massivelyop.com/2020/07/15/tencent-edges-out-sony-in-leyou-technologies-buyout-negotiations/

I followed the news and specific offers/bids through Daniel Ahmad's Twitter all last year.

  • +4
DonFerrari Blood_Tears (on 10 January 2022)

Thank you. Couldn't open the original sources. But yes seems like the company was wishing to sell, so a bid war at least makes sense. Most time we just get rumors of companies wanting to buy and that one outbid another, which doesn't make sense since those deals would be with NDA and nothing made public except the offer that was accepted so no one could really say there was even bid wars. Still for Sony I only find "reports" that Sony was interested, nothing public.

  • 0
Azzanation DonFerrari (on 10 January 2022)

Sony already make Mobile games

  • 0
DonFerrari Azzanation (on 10 January 2022)

I know, but paying 12.7B would to me sign that it is a focus for the company instead of just additional revenue that they may use to give their IPs more exposition.

  • 0
SecondWar (on 10 January 2022)

Given what Zynga is known for and my hopes for the future of franchises like GTA and Red Dead this given me a sinking feeling in the pit of my stomach.

  • +5
Chazore SecondWar (on 10 January 2022)

Feels like a load of the bigger publishers are now going after mobile game companies, since we have Activision with Candy Crush, T2 with Zynga , Konami doing it's Gacha crap, etc.

  • 0
ClassicGamingWizzz Chazore (on 10 January 2022)

Some gacha games are ok, they give cash for companies to put in their console pc franchises, problem is companies like konami , sucking the mobile tit and letting amazing IPs die

  • +4
Chazore ClassicGamingWizzz (on 10 January 2022)

They are a weird company, because we've known for years now that they don't want to be in the games industry anymore, but at the same time they still want to remain here, because they know money can still be made.

  • +3
ClassicGamingWizzz Chazore (on 10 January 2022)

Konami is all about profit, pay to win mobile yu gi oh prints money for them for example.

They are not the worst, those tribe games are evil, my brother and a cousin play those and holy shit , i dontknow how people dont see the traps these companies do to make people adicted.

  • +1
DonFerrari ClassicGamingWizzz (on 10 January 2022)

Exvius for me is gacha done right. It is more important to play and get your gear than to pay for the new units. Sure every time the meta is changing, but you can still use cheap units and win almost every even with the gear you have been hoarding, plus they give you plenty of free pulls every now and then.

  • 0
ClassicGamingWizzz DonFerrari (on 10 January 2022)

Used to play it and loved it, never gave them a cent, always hoarding until a favourite character arrives.

  • +4
DonFerrari ClassicGamingWizzz (on 10 January 2022)

Same here. Only done step ups or banner summon like every two months, but with the many gears I had, I can finish DV and CoW with good rank.

  • 0
KratosLives (on 11 January 2022)

Gta6 going mobile. Shark cards incoming

  • 0
Azzanation (on 10 January 2022)

Werent Zygna under MS?

  • -5
AkimboCurly Azzanation (on 10 January 2022)

You may be thinking of Don Mattrick who went to work for Zynga after heading up Xbox

  • +3
DonFerrari AkimboCurly (on 10 January 2022)

And we hope Don Mattrick would have imploded Zynga when going there, unfortunately not even him were able to do it.

  • 0
Azzanation AkimboCurly (on 10 January 2022)

I throught he was moved to Zynga which was under MS at the time, guess he just left MS completely.

  • +2
DonFerrari Azzanation (on 10 January 2022)

My guess is MS was done with it, so he moved out completely.

  • 0