GTA Publisher Take-Two Acquires Farmville Developer Zynga for $12.7 billion

Take-Two Acquires Zynga

Take-Two Interactive has announced that it has made an agreement to buy a mobile game developer Zynga.

The publisher will acquire all of the FarmVille creator's outstanding shares for a total enterprise value of about $12.7 billion.

Numerous acquisitions from both large and small gaming companies have occurred in recent years. PlayStation acquired both Bluepoint Games and Housemarque, the creators of hits such as the Demon's Souls remake and Returnal, including both.

Of course, Microsoft's massive acquisition of ZeniMax Media and Bethesda, as well as its numerous studios, shook up the video game industry just before the release of next-gen consoles. Take-Two has announced the purchase of mobile developer Zynga for approximately $12.7 billion, in what many consider to be the largest game company acquisition in history. Take-Two will now include Zynga alongside other Take-Two companies such as 2K Sports and Rockstar Games.

According to a press release: "The deal will result in a powerful and diverse portfolio of industry-leading titles spanning key platforms and genres in interactive entertainment, developed by some of the industry's most creative and forward-thinking talent. The Company expects to benefit from significant development and publishing synergies, unlock new revenue streams, and reach new audiences around the world by sharing best practices and key data insights across the enterprise."

*Take-Two Interactive To Acquire Zynga for $9.86. Shr, Implying Enterprise Value of $12.7B $TTWO

— *Walter Bloomberg (@DeItaone) January 10, 2022

The acquisition now represents the largest amount of money ever paid for the acquisition of a game studio, easily overtaking Microsoft's $7.5 billion bid for Bethesda last year. It opens the door to the possibility of a mobile version of GTA Online. Other Take-Two properties may also make the transition to mobile via Zynga studios.

Take-Two Chairman and CEO Strauss Zelnick stated that the company is excited to be diversifying its studio lineup with Zynga, establishing Take-firm Two's foothold in the mobile game industry. Take-best-in-class Two's console and PC franchises will now be joined by a mobile publishing platform with a "rich history of innovation and creativity," according to Zelnick.

Zynga is, without a doubt, one of the most popular smartphone game developers, having essentially kickstarted the platform's popularity with games like FarmVille and Words With Friends, as well as other hits like Harry Potter: Puzzles and Spells and Draw Something. Currently, Zynga is working on Star Wars Hunters, which will be released in 2022 for mobile platforms as well as the Nintendo Switch.

Zynga reported revenue of $705 million in the most recent quarter, up 40% year over year, and managed to improve its bottom line with lower losses in 2021.

The deal is also the most valuable in the game industry's history, surpassing Tencent's $8.6 billion acquisition of Supercell in 2016 and Microsoft's $7.5 billion acquisition of Bethesda parent ZeniMax in 2020.

Source: take2games