In recent years the video game industry has entered an era of concentration where every big player hopes to buy back almost anything that moves. The editor Take-Two brings us the proof today by offering himself a heavyweight mobile game for a record sum.
If you thought that Microsoft’s 2020 acquisition of ZeniMax would allow an entire industry to ease stratospheric buyouts, you would be completely wrong. It has to be said that Take-Two has had to spend a few billion dollars more or less quickly since trying (unsuccessfully) to acquire Codemasters. Since the giant Electronic Arts stole his bet, The editor of Grand Theft Auto wants to buy Zynga, specializing in mobile games, for the proud sum of 12.7 billion dollars.
Take-Two takes it all
Founded in 2007 and based in San Francisco, the San Francisco-based company made a name for itself with the success of a particular Farmville posted on the Facebook social network in 2009 before it made a name for itself through its Zynga Poker mobile games. Ironic, Zynga had also entered a phase of withdrawals, as the studios Echtra Games, Chartboost and StarLark had only fallen into their wallets for around $ 800 million in 2021.
Hoping to close the deal, Take-Two intends to seduce the Zynga shareholders, who will be offered compensation of $ 9.86 per share, including $ 6.36 in Take-Two stock, according to information from Wall Street Journal. According to the announcement, Zynga shares rose 44% when the NASDAQ opened. For its part, Take-Two lost 14% …
The dark side of mobile gaming
Unsurprisingly, Take Two CEO Strauss Zelnick was visibly delighted with this announcement, which will make his group a new heavyweight in mobile gaming, despite Zynga suffering $ 430 million in losses in 2020. , despite 2 billion sales in the same period:
This transaction will significantly diversify our business and consolidate our leading position in mobile gaming, the fastest growing segment of the interactive entertainment industry. VSIts strategic combination will bring our best console and PC licenses together from one market-leading mobile platform. We look forward to welcoming Zynga to the Take Two family in the coming months.
This juicy operation will allow the publisher to increase the revenue share of mobile games from 12% to 50% by the next fiscal year. It has yet to be accepted by the shareholders of the two companies concerned and the market surveillance authorities. Everyone has to come to an agreement before June 30, 2022.
