Take Two fell 13 on news of the Zynga acquisition
Games

Take-Two fell 13% on news of the Zynga acquisition

Game developer and publisher Take-Two was down 13% after announcing the $ 12.7 billion acquisition of Zynga that was overpaying the company.

Image source: zynga.com

Image source: zynga.com

The acquisition of Zynga for $ 12.7 billion will actually be the largest in the games industry: In comparison, in 2016 the Chinese Tencent spent $ 8.6 billion on the acquisition of the Finnish Supercell, and the purchase of ZeniMax and Bethesda Cost Microsoft $ 7.5 billion in 2020 Take-Two will close the deal to acquire a new asset by June 2022. According to the new owner, most of the studio will focus on the wireless communications market.

Given the high popularity of Take-Two’s projects, the company’s main disadvantage remains a weak presence in the mobile sector, while Zynga has a lot of experience here and the release of mobile versions of GTA Online or spin-offs of the franchise could have been no less successful than on PCs and consoles. Experts explain the decline in Take Two shares by 13.13% in just one day with the fact that the publisher turned to the mobile segment late and now has to pay too much because it did not have its own mobile division. The high transaction amount ensures that the purchase is not interrupted by another player – in 2020 EA took over the Codemasters studio, which was interested in Take-Two. This version is confirmed by the simultaneous rise in the price of Zynga shares by 40.67%.

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Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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