Take-Two acquires Farmville creators Zynga for $12.7bn

Take-Two Interactive has acquired mobile and social gaming giant Zynga in a deal with $12.7bn. 

Previously citing mobile gaming as being a “key growth opportunity” for Take-Two in its first quarterly results, the takeover is set to make the Grand Theft Auto publisher one of the biggest mobile game companies within the sector.

Commenting on the acquisition, Take-Two Chairman and CEO, Strauss Zelnick, stated: “We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry.

“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. 

“Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months.”

Moreover, the addition of Zynga’s mobile portfolio, which includes Farmville, Words With Friends, Harry Potter: Puzzles and Spell, is said to enable Take-Two to expand its source of revenue and “help reduce volatility” between the company’s major releases on console and PC.

Take-Two expects approximately $100m of annual cost synergies within the first two years after closing, primarily driven by the rationalisation of duplicative overhead including corporate general and administrative expenses and public company costs, as well as the benefit of scale efficiencies across the enterprise.

“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,” added Frank Gibeau, CEO of Zynga. 

“I am proud of our team’s hard work to deliver a strong finish to 2021, with one of the best performances in Zynga’s history. We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. 

“With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”