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Highlights
- Take-Two Interactive announced to acquire Zynga via a cash-and-stock deal.
- On execution, the total enterprise value is estimated at US$12.7 billion.
- The companies are anticipating annual net bookings opportunities of over US$500 million.
The Grand Theft Auto video game maker Take-Two Interactive announced that it would acquire Zynga for $US11.04 billion via a cash-and-stock deal.
Both firms have signed a definitive agreement under which Take-Two would buy all of Zynga's outstanding shares in a cash and stock deal worth $9.86 per Zynga share, bringing the total enterprise value to US$12.7 billion. This is one of the biggest deals in this sector, which will create a gaming powerhouse with a market cap of nearly US$30 billion.
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After completing the deal, popular mobile titles like FarmVille will come under Take-Two, followed by the surge in demand for on-the-go gaming.
With the transaction, Take-Two will be one of the largest mobile game publishers with US$6.1 billion in Pro-forma net bookings for the trailing twelve-month period ended September 30, 2021, delivering a 14% compound annual growth rate.
The Companies are anticipating roughly U$100 million of annual cost synergies within the first two years after closing, along with net yearly bookings opportunities of over US$500 million over time.
Take-Two has also revealed that it will increase its highly-attractive revenue stream – Recurrent Consumer Spending (RCS), further empowering the transaction.
Bottomline
With this acquisition, many people expect Take-Two to make a big deal in the mobile industry closing the gap with different competitors.
