Take-Two has announced they will acquire Zynga for an unprecedented $12.7billion.
The acquisition brings together two vast, but distinct, portfolio of games. Whereas Take-Two has made a name for itself thanks to its console and PC games – GTA and the NBA 2K series being two of their most popular games – Zynga is more known for its mobile game library.
According to VGC, Take-Two is hoping that Zynga’s expertise in mobile gaming will help bring its core franchises to the mobile platform. Mobile gaming continues to be a profitable (and controversial) market for primarily console and PC developers who are looking to expand into this market. Several big gaming companies already have pushed their franchises to mobile or at least are working to do so. In this context, Take-Two’s acquisition is perhaps to be expected.
The news, however, did not hit investors well initially. As reported by VGC, the news of the potential merger was received with mix results if the stock market has anything to say. Take-Two stocks dropped by a significant margin, ending the day 13.13% down, whereas Zynga shares were up by over 40%. The price tag was reportedly a huge factor as $12.7billion would make it one of the largest video game company acquisitions ever. Perhaps it just goes to show how profitable the mobile gaming market could be.
For the full press release, see here.