Take-Two Interactive said on Monday it would buy Zynga for $11.04 billion in a deal that will bring the smash-hit video game “Grand Theft Auto” and mobile-friendly “FarmVille” under one roof as demand for affordable on-the-go gaming surges.
The deal, one of the biggest in the sector, will create a gaming powerhouse spanning console, PC and mobile devices and comes as people increasingly gravitate toward smartphone games.
Take-Two, also known for adventure game “Red Dead Redemption”, offered $9.86 per share for the deal, representing a 64 per cent premium to the last closing price of Zynga shares. Including debt, the acquisition is worth $12.7 billion.
“It’s a bombshell deal... Zynga was on the list of potential M&A transactions for a long time in the video game business,” said Serkan Toto, CEO of videogame consulting firm Kantan Games.
“Take-Two is looking at the industry map and says ‘we have basically nothing here’. So, a lot of people have been expecting Take-Two to make a big deal in mobile to close the gap with competitors like Electronic Arts for example.”
Electronic Arts bought Glu Mobile for $2 billion last year.
