Take-Two Interactive, a company known for just relying on its cash cow Grand Theft Auto Online for too darn long that it forgot how to publish remastered GTA games, is using all its fat stacks to buy Zynga.
The Facebook game-savvy developer will be bought for US$12.7 billion. The acquisition is going to happen close during the first quarter of Take-Two’s fiscal year 2023, which will end on 30 June 2022.
Official presser with words from Take-Two Interactive chairman and CEO Strauss Zelnick below:
“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. This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity.
Zynga also has a highly talented and deeply experienced team, and we look forward to welcoming them into the Take-Two family in the coming months. As we combine our complementary businesses and operate at a much larger scale, we believe that we will deliver significant value to both sets of stockholders, including $100 million of annual cost synergies within the first two years post-closing and at least $500 million of annual Net Bookings opportunities over time.”
Zynga CEO and ex-EA head Frank Gibeau, a person who defines the phrase “failing upward”, has this to say:
“Combining Zyngaâ€™s expertise in mobile and next-generation platforms with Take-Twoâ€™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 and synergies together. I am proud of our teamâ€™s hard work to deliver a strong finish to 2021, with one of the best performances in Zyngaâ€™s history.
We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”
One could say this is a match made in heaven: Take-Two needs a proper breadwinner and Zynga can provide it with its lowest common denominator click-heavy games. This may sound like hell, but remember: Zynga’s long-term profits for Take-Two means seeing more titles like a BioShock sequel coming soon. And maybe even a WWE or NBA game that isn’t complete garbage.