GTA maker Take-Two bets on mobile games with $12.7 billion Zynga purchase
The deal will make it a lot easier for Take-Two to bring some of its iconic franchises to mobile.
- Take-Two Interactive plans to acquire FarmVille maker Zynga.
- The deal has been valued at $12.7 billion.
- Take-Two expects the deal to close before the end of June 2022.
Leading video game company Take-Two Interactive on January 10 announced that it will acquire FarmVille developer Zynga for $12.7 billion (via The Verge). The deal is the largest ever in the video game industry and is expected to close before June 30, 2022. As with any major acquisition, however, the deal is subject to approval from stockholders and regulators.
The acquisition will bring Zynga's best mobile games such as FarmVille, CSR Racing, Empires & Puzzles, Golf Rival, Hair Challenge, Harry Potter: Puzzles & Spells, High Heels, Merge Dragons, Toon Blast, Toy Blast, and Words With Friends under Take-Two's umbrella.
Take-Two says the acquisition will allow it to "capitalize on the interactive entertainment industry's strong tailwinds" and become a leader in the mobile games sector. According to recently published data from Newzoo, mobile games will generate revenues of $116.4 billion in 2024.
Strauss Zelnick, Chairman and CEO of Take-Two, said in a statement:
This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity.
The company expects mobile gaming to comprise over 50% of its Net Bookings in fiscal year 2023, up from 12% in fiscal year 2022. Take-Two has also revealed that it will create new mobile games for its iconic PC and console titles. Although Take-Two hasn't confirmed it yet, there's a good chance that the combined company could release a new free-to-play GTA game to capitalize on the massive popularity of GTA Online.
It is worth noting that this isn't the first time that a leading publisher has bought a mobile game developer. Back in 2015, Activision Blizzard spent $5.9 billion to acquire Candy Crush maker King. EA also stepped into the mobile gaming space last year by acquiring Kim Kardashian: Hollywood developer Glu and Golf Clash developer Playdemic.