Zynga shoots up by 50% after combining with Take-Two Interactive

Zynga (NASDAQ: ZNGA) spiked 50% after it announced it was combining with Take-Two Interactive (NASDAQ: TTWO) to boost its interactive entertainment offering. These two top players in the mobile and interactive entertainment space announced that they had executed a definitive merger agreement. 

The agreement stated that Zynga would give all their outstanding common stock shares to Take-Two for a consideration of $9.86 per share, representing a total value of roughly $12.7 billion. According to the deal, Zynga stockholders will get $6.36 in shares and $3.50 in cash.

A transformative merger

This transformative combination will unify two of the top players in the interactive entertainment sector. It will help make Take-Two one of the most diversified and largest mobile game developers in the industry. 

Both companies have expanded and built iconic game franchises and will come together to create one of the world’s most diverse and most extensive intellectual properties portfolio in the sector. Take-Two is home to some of the world’s most beloved series, including Grand Theft Auto, NBA 2K, Red Dead Redemption, and Midnight Club. 

On the other hand, Zynga's portfolio includes titles like Empires and Puzzles, CSR Racing, Harry Potter Puzzles and Spells, Toon Blast, and so on. 

What did management have to say?

Take-Two’s Chief Executive Officer and Chairman, Strauss Zelnick, said that they were happy to announce this transformative transaction which will significantly diversify their business and help establish them as a leader in the mobile gaming space. 

Mr. Zelnick said:

Zynga’s Chief Executive Officer, Frank Gibeau added:

Mr. Gibeau claimed that he was proud of how their team managed to finish the year strongly ad report record-breaking performances. He said that this transformative deal will allow them to reach bigger audiences, develop even better games and grow significantly in the overall gaming space.