Take Two, the publisher and owner of the GTA franchise, has just announced it has acquired mobile game developer Zynga. It’s a surprising acquisition from Take Two, which is known for its PC and console game franchises, not to mention that the price it pays for that to happen is huge.
According to the official statement, Take Two will acquire all shares of Zynga in a cash and stock transaction valued at $9.86 per share, with a total enterprise value of approximately $12.7 billion.
It looks like the deal is meant to establish Take Two as a leader in mobile gaming. Also, Take Two hopes to boost the popularity of its mobile offerings, which include games like Dragon City, Monster Legends, Top Eleven, Two Dots, and WWE SuperCard.
More importantly, the acquisition of Zynga will allow Take Two to make new mobile game for many of its iconic franchises. Last but not least, Take Two plans to use Zynga’s Chartboost advertising platform, which is meant to improve new user acquisition via better audience targeting.
Strauss Zelnick will remain chairman and CEO, while the management team of Take Two will continue to lead the combined company. Zynga’s Frank Gibeau and Bernard Kim will lead the strategic direction for Take Two’s mobile efforts. Additionally, Take Two will expand its Board of Directors to 10 members to add two members from Zynga’s Board of Directors.