Take-Two Interactive to Acquire Zynga for an Enterprise Value of approximately. $12.7 Billion

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Take Two Interactive (NASDAQ TTWO), a NYC-based publisher of mobile games, will acquire Zynga (NASDAQ : ZNGA), an interactive and mobile entertainment company with a total enterprise value of approximately $12.7 billion.

Take-Two Interactive Software, headed by Strauss Zelnick (CEO), is a publisher, marketer, and developer of interactive entertainment for consumers all over the world. The company publishes and develops products primarily through Rockstar Games and 2K. Private Division is also included. The company’s products are available for console systems, personal computers, mobile devices, such as smartphones and tablets. They are also available through digital download, physical retail and online platforms.

Frank Gibeau, the CEO of Zynga, founded it in 2007. Zynga’s next-generation platform Chartboost is a mobile advertising platform and monetization platform. It can optimize programmatic advertising and maximize yields at scale. Zynga has offices in North America, Europe, and Asia. Follow Zynga on Twitter and Instagram, Facebook, or the Zynga Blog.

Take-Two will increase its mobile offerings with the transaction. These include popular titles like Dragon City, Monster Legends and Top Eleven. They also offer a variety of titles that target many of the most popular mobile gaming genres such as casual, mid-core and puzzle, social casino, and sports games.

Strauss Zelnick, the Chairman and CEO of Take-Two, will remain in place at the closing of the transaction. The management team of Take-Two, however, will continue to lead Take-Two. Zynga’s management team, headed by Frank Gibeau, and Zynga’s President of Publishing Bernard Kim, will guide Take-Two’s mobile efforts. They will also oversee the integration and day-to-day operation of the combined Zynga/T2 Mobile Games business. The Zynga brand will be used within the Company as its own label. Take-Two will also increase its Board of Directors from the current nine members to include two Zynga members.

Take-Two received $2.7 billion in committed financing from J.P. Morgan as part of the deal. Take-Two plans to finance the cash component of this transaction using both cash from its balance sheet and proceeds from new debt issuance.

The transaction is expected to close during Take-Two’s first quarter 2023. It will be completed by Zynga stockholders. The Take-Two Boards of Directors and Zynga Boards of Directors unanimously approved the deal.

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