Take-Two Interactive, maker of "Grand Theft Auto" and "Red Dead Redemption," is buying Zynga, maker of "FarmVille" and "Words With Friends," in a cash-and-stock deal valued at about $12.7 billion.
The acquisition announced Monday would wed a powerhouse in console gaming, Take-Two, with a mobile gaming company with an almost cult-like following.
Zynga shareholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga outstanding stock at closing. The transaction is valued at $9.86 per share of Zynga common stock.
"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," Take-Two Chairman and CEO Strauss Zelnick said in a prepared statement. He will retain those roles when the companies become one.
READ MORE: Facebook rebrands as Meta to emphasize 'metaverse' virtual reality vision
Take-Two anticipates the deal will help bring about mobile versions of some of its console and personal computer based games.
Take-Two said Monday it anticipates approximately $100 million in annual cost savings within the first two years after the transaction is complete.
Zynga CEO Frank Gibeau and its president of publishing, Bernard Kim, will oversee the integration and day-to-day operations of the combined Zynga and T2 Mobile Games business, which will operate under the Zynga brand as its own label within the Take-Two.
Take-Two will also expand its board to 10 members upon closing, adding two members from Zynga's board.
The transaction includes a go-shop provision, giving Zynga 45 days to hear alternative proposals.
The deal is expected to close during the first quarter of Take-Two's fiscal 2023, ending June 30. It still needs approval of both Take-Two and Zynga stockholders. It has received approval from both companies' boards.
Shares of Zynga Inc., based in San Francisco, jumped 52.5 percent to $9.15. Shares of Take-Two Interactive Software, Inc., based in New York City, fell 8.7 percent to $150.25.
Sustain our coverage of culture, arts and literature.
Mahogany Browne is a poet, writer, organizer and educator. Recently, she became the first-ever poet-in-residence at the Lincoln Center in…
For many, Cheech Marin is a household name. The comedian and actor is best known as part of the countercultural…
The blues guitar legend Buddy Guy once wrote, "Funny thing about the blues. You play 'em cause you got 'em.…
No matter what role he took on in a career that lasted more than five decades, Gambon was always instantly…
Actor David McCallum, who became a teen heartthrob in the hit series "The Man From U.N.C.L.E." in the 1960s and…
Hurricane Ida destroyed this 117-year-old Italian deli, a beloved hallmark of the French Quarter. Two years later, the owners are…
Writers and the major studios reached a tentative deal after nearly five months of striking. In the coming days, members…
Sheila Johnson made history as America's first Black female billionaire after co-founding BET. She broke barriers and found success as…
Writer Mary Otis' work grapples with issues of addiction, artistic purpose, and mother-daughter relationships. She recently performed excerpts from her…
Actors remain on strike, but movement on the writers' demands could mean that the actors will find a resolution soon…
For Hispanic Heritage Month, as part of our "Hidden Histories" series, we look back on the life of Lydia Mendoza,…
The NFL, Apple Music and Roc Nation announced Sunday that Usher would lead the halftime festivities from Allegiant Stadium in…
The husband-and-wife creative duo behind the 12-member Tedeschi Trucks Band have been called two of the best roots musicians of…
On the 50th anniversary of that match against Bobby Riggs -- still the most-watched in tennis history -- King moved…
Ruth Simmons grew up in a deeply segregated part of Texas to become one of the country's most distinguished educators,…
