Take-Two said Monday it is buying Zynga in a cash-and-stock deal valued at $12.7 billion, including debt. The deal values Zynga at $9.86 a share.
The deal gives Take-Two a bigger presence in the lucrative world of mobile gaming, expanding its business beyond the console and PC games it is mainly known for, including NBA 2K, Red Dead Redemption and the GTA series.
“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Take-Two’s chairman and CEO, in a statement.
For Zynga, the takeover gives the company a deeper pocketed parent in the gaming business that can help it grow.
Zynga hopes the merger with Take-Two will lead to more growth opportunities.
“Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth,” said Zynga CEO Frank Gibeau in a statement.