Videogame maker Take-Two Interactive to buy Zynga in $12.7 billion deal

Zynga shares were up nearly 50% in Monday premarket trading (Photo: Reuters) — Zynga shares were up nearly 50% in Monday premarket trading **(Photo: Reuters)**

1 min read . Updated: 10 Jan 2022, 06:46 PM IST Matt Grossman, The Wall Street Journal

Zynga shareholders would receive $3.50 in cash and $6.63 of Take-Two stock for each share they own

Take-Two Interactive Software Inc. has reached a deal to buy Zynga Inc. in a $12.7 billion deal that would unite two videogame companies with a presence across gaming platforms.

The cash-and-stock deal would value mobile game maker Zynga at about $12.7 billion. Zynga stockholders would receive compensation of about $9.86 for each Zynga share that they own, including $3.50 in cash and $6.36 of Take-Two stock.

That is about a 64% premium to Zynga’s stock price of $6.00 as of Friday’s close. Zynga shares were up nearly 50% in Monday premarket trading.

Zynga’s games include “FarmVille" and “Words With Friends," titles that showcased how videogames could blend entertainment with a social-media ethos.

Take-Two makes titles such as “Grand Theft Auto," “Civilization" and “Red Dead Redemption."

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The deal is expected to close between April and June.

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