Take-Two Interactive (TTWO) to complete acquisition of Zynga (ZNGA) next week
Following a vote of approval by shareholders, the $12.7 billion deal will go through and Zynga will be absorbed into Take-Two on Monday.
One of the bigger deals of the year in the gaming and tech industry is coming to a close next week. Many will recall earlier this year, and soon after Microsoft announced its deal to acquire Activision Blizzard, Take-Two Interactive also announced a $12.7 billion USD deal to acquire mobile gaming giant Zynga. The latter of these deals has been voted for approval by stockholders of both organizations and the acquisition will be complete on Monday.
News of the Take-Two Interactive and Zynga deal coming to a close was posted on Take-Two’s Investor Relations website. Reportedly, shareholders of both organizations have finished voting and approved all proposals related to Take-Two’s acquisition of Zynga. The deal will come to completion on Monday, May 23, 2022. With this approval, shares of Zynga will cease trading after stock market closes on Friday and will be delisted from the NASDAQ soon after. Under the terms of the merger agreement, Zynga stockholders will be entitled to $3.50 in cash and 0.0406 shares of Take-Two stock per share of Zynga stock.
While Zynga and Take-Two both had some misses during the most recent financial quarters (a revenue miss for Zynga and EPS miss for T2), both remain highly profitable companies. Following the shocking announcement of the $12.7 billion deal earlier this year, Take-Two stands ready to take a far bigger foothold in mobile gaming with Zynga’s help, not only absorbing custody and maintenance of its IPs, but also having Zynga’s developer expertise in furthering Take-Two’s own mobile ventures.
It will be interesting to see what early steps Take-Two makes with Zynga under its umbrella, but given the deal’s official close on Monday, we’re sure to find out more soon. Stay tuned here at Shacknews as the deal closes and we await further details on what’s next for Take-Two Interactive.
TJ Denzer posted a new article, Take-Two Interactive (TTWO) to complete acquisition of Zynga (ZNGA) next week