The deal still needs the approval of Take-Two and Zynga stockholders.
Take-Two said Monday it anticipates $100 million (roughly Rs. 740 crore) in annual cost savings
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 with an enterprise value of about $12.7 billion (roughly Rs. 94,030 crore).
Zynga shareholders will receive $3.50 (roughly Rs. 260) in cash and $6.36 (roughly Rs. 470) in shares of Take-Two common stock for each share of Zynga outstanding stock at closing.
Take-Two said Monday it anticipates $100 million (roughly Rs. 740 crore) in annual cost savings.
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.
Shares of Zynga, based in San Francisco, jumped 52 percent to $9.14 (roughly Rs. 680). Shares of Take-Two Interactive Software, based in New York City, fell more than 8 percent to $150.66 (roughly Rs. 11,160).
“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,” said a statement from Take-Two Interactive on the announcement.
The company said the transaction is expected to establish Take-Two as a leader in mobile gaming, with mobile expected to comprise over 50 percent of its net bookings in FY 2023 (as compared to an estimated 12 percent in Fiscal Year 2022).
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