Take-Two Not Done With Acquisitions Following Zynga Deal - News
by William D'Angelo , posted on 10 January 2022 / 1,611 Views
Take-Two Interactive today announced it will acquire Zynga in a deal valued at $12.7 billion. The deal is expected to be completed during the first quarter of Take-Two's fiscal year 2023, which ends June 30, 2022.
Strauss Zelnick, chairman and CEO of Take-Two Interactive, speaking during an investors call attended by VideoGamesChronicle said the company is not done with making acquisitions.
In terms of your question regarding ongoing acquisitions, that’s still something that will be of interest to us," said Zelnick.
"We will close this transaction with a fortress like balance sheet, with very little net debt. We expect to be in a net cash position within a few years, by fiscal 24 [the business year ending March 31, 2024].
"We expect to generate positive cash flow on an ongoing basis as soon as the transaction closes and we expect the transaction to be accretive, so we’ll be in a powerful position to continue to acquire. And our approach to acquisition remains the same, which is we’re looking for great teams, great intellectual property, and accretive transactions. This transaction, for example, is expected to be accretive upon its closing."
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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No company truly is done with acquisition.
Ufff, hope they keep it to developers I don't care about (like you guessed it: Zynga)
If Take 2 is doing this than it is going to set a precedent for other developers to do the same (if they haven't already.).
At the end of the day these companies are businesses and if they can nickel and dime gamers for all they are worth they will not hesitate for even a second.
Worst part is this practice will no doubt pay off handsomely for them due to the numbers brought in by the casual/mobile gaming market. As much as we don't like to admit it we live in a very niche category of gaming (all the people who frequent sites like this.) that most of the population is unfamiliar with.
I imagine these fickle mobile type games have a massive audience and even the most tedious game brings in insane revenue.
Perhaps one day these practices will catch up with Take 2 but in the mean time I see nothing but green coming their way.
-MONEY, MONEY, MONEY... NINJA APPROVED-
This is interesting to note I think, because take-two is currently a $3 billion per year revenue company. The fact that they are still looking for acquisitions after embarking on such a massive purchase tells me 3 things
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Inflationary trends in the economy are incentivizing big purchases now, as companies are trying to maximize how far their dollar can go
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Borrowing money is really cheap right now
- Smaller players in the market are not excluded from the feeding frenzy. Sony and Nintendo don’t need a Microsoft level money printer to get involved, should they want to. Microsoft and Sony at least have both said they aren’t finished with acquisitions
Zynga?
Now there's a name I hadn't heard since Facebook started allowing users to permablock game requests.
You know, every company has said this after making a purchase. There must be PR handbook for responses to questions or something.
