Take-Two Interactive will acquire Zynga in a cash-and-stock transaction valued at approximately $12.7 billion, representing a 64% premium over Zynga’s January 7, 2022, closing price.
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The merger combines Take-Two’s console and PC franchises, such as Grand Theft Auto, with Zynga’s mobile free-to-play titles to create a diversified portfolio across platforms.
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The combined entity projects net bookings to exceed $6 billion in fiscal year 2023, with an expected three-year compound annual growth rate of 14%.
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Management anticipates $6.1 billion in cost synergies and expects adjusted unrestricted operating cash flow to increase from $1.2 billion in FY21 to $1.5 billion by FY24.
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Take-Two has secured $2.7 billion in debt financing to cover the cash portion of the deal, which is expected to close in the first quarter of fiscal year 2023.
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The transaction aims to leverage Zynga’s mobile advertising platform and player database to accelerate user acquisition and enhance cross-platform monetization.
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Take-Two will expand its board of directors to ten members, incorporating two representatives from Zynga to oversee the combined operations.
Insights
01
Take-Two Interactive will acquire Zynga in a cash-and-stock transaction valued at approximately $12.7 billion, representing a 64% premium over Zynga’s January 7, 2022, closing price.
02
The merger combines Take-Two’s console and PC franchises, such as Grand Theft Auto, with Zynga’s mobile free-to-play titles to create a diversified portfolio across platforms.
03
The combined entity projects net bookings to exceed $6 billion in fiscal year 2023, with an expected three-year compound annual growth rate of 14%.
04
Management anticipates $6.1 billion in cost synergies and expects adjusted unrestricted operating cash flow to increase from $1.2 billion in FY21 to $1.5 billion by FY24.
05
Take-Two has secured $2.7 billion in debt financing to cover the cash portion of the deal, which is expected to close in the first quarter of fiscal year 2023.
06
The transaction aims to leverage Zynga’s mobile advertising platform and player database to accelerate user acquisition and enhance cross-platform monetization.
07
Take-Two will expand its board of directors to ten members, incorporating two representatives from Zynga to oversee the combined operations.