Take-Two buys Zynga in $12.7B deal, carving out gaming space
NEW YORK (AP) — 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.
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.
Take-Two said Monday it anticipates $100 million 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 Inc., based in San Francisco, jumped 52% to $9.14. Shares of Take-Two Interactive Software, Inc., based in New York City, fell more than 8% to $150.66.
