Take-Two Interactive To Acquire Zynga, for Enterprise Value of Approx. $12.7 Billion

Take-Two Interactive

Take-Two Interactive (NASDAQ: TTWO), a NYC-based mobile game publisher, is to acquire Zynga (NASDAQ: ZNGA), interactive and mobile entertainment company, for a total enterprise value of approximately $12.7 billion.

Led by Strauss Zelnick, Chairman and CEO, Take-Two Interactive Software is a developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company develops and publishes products principally through Rockstar Games, 2K, Private Division, and T2 Mobile Games. Its products are designed for console systems, personal computers, and mobile, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms, and cloud streaming services.

Founded in 2007 and led by Frank Gibeau, CEO, Zynga is a global leader in interactive entertainment with a diverse portfolio of popular game franchises including CSR Racing™, Empires & Puzzles™, FarmVille™, Golf Rival™, Hair Challenge™, Harry Potter: Puzzles & Spells™, High Heels!™, Merge Dragons!™, Merge Magic!™, Toon Blast™, Toy Blast™, Words With Friends™ and Zynga Poker™. With Chartboost, a mobile advertising and monetization platform, Zynga is an industry-leading next-generation platform with the ability to optimize programmatic advertising and yields at scale. Zynga is headquartered in California with locations in North America, Europe and Asia. or follow Zynga on Twitter, Instagram, Facebook or the Zynga blog.

The transaction will bolster Take-Two’s mobile offerings, which include popular games such as Dragon City, Monster Legends, Top Eleven, Two Dots, and WWE SuperCard, and consist of a diverse array of titles that focus on many of the most popular genres in mobile gaming, including casual, hyper-casual, lifestyle, mid-core, puzzle, social casino and sports games.

At the close of the transaction, Strauss Zelnick will continue to serve as Chairman and CEO, and the management team of Take-Two will continue to lead the combined company. Zynga’s management team, led by Frank Gibeau and Zynga’s President of Publishing, Bernard Kim, will drive the strategic direction for Take-Two’s mobile efforts and will oversee the integration, and day-to-day operations of the combined Zynga and T2 Mobile Games business, which will operate under the Zynga brand as its own label within the Company. Additionally, Take-Two will expand its Board of Directors to 10 members upon the closing of the transaction to add two members from Zynga’s Board of Directors.

As part of the deal, Take-Two has received committed financing of $2.7 billion from J.P. Morgan and intends to fund the cash component of the transaction through a combination of cash from its balance sheet as well as proceeds of new debt issuance.

The transaction, which is expected to be completed during the first quarter of Take-Two’s Fiscal Year 2023, ending June 30, 2022, is subject to the approval of both Take-Two and Zynga stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. The deal has been unanimously approved by the Take-Two and Zynga Boards of Directors.