Take-Two Interactive closes $12.7B acquisition of Zynga
The acquisition: An agreement was made on January 10, 2022.
- The Grand Theft Auto publisher has now purchased all outstanding shares of Zynga in a transaction worth around $12.7B.
- Zynga CEO Frank Gibeau will oversee the company's integration alongside its President of Publishing, Bernard Kim, before the latter leaves to join dating app Match at the end of May.
- "As we bring together our exceptional talent, exciting pipelines of games, and industry-leading technologies and capabilities, we believe that we can take our portfolio to another level of creativity, innovation, and quality," said Take-Two CEO Strauss Zelnick.
Why has Take-Two spent billions of dollars to acquire Zynga? Let's get into it.
- Zynga is a major player in mobile gaming, a sector that most (if not all) studios want a piece of. The accessibility of mobile gaming, and the purchasing power of gamers through microtransactions, make it a desirable venture.
- Take-Two acquiring an established name in mobile cuts out a lot of groundwork, and potential failure, for the company. Its mobile arm is instantly comparable with top studios like EA and Activision Blizzard, which opens doors to new consumers and locations.
- It's worth noting that Grand Theft Auto is one of the biggest game franchises to ever exist, yet the latest instalment (which was released nine years ago) isn't on mobile. If Take-Two, armed with its strengthened mobile division, could bridge that gap then it immediately becomes clear why this transaction was made.