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Take-Two Interactive buys Zynga in $12.7 billion deal

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Take-Two Interactive buys Zynga in $12.7 billion deal

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https://www.nintendolife.com/news/2022/01/gta-publisher-take-two-buys-farmville-giant-zynga-for-usd12-7b
Take-Two Interactive Software is acquiring Zynga in a $12.7 billion deal, the two companies confirmed on Monday, 10th January. That colossal sum includes Take-Two paying $9.86 per share, plus Zynga's debt, in order for the company to make moves into the mobile market.

This deal is now the largest sum of money paid out for an acquisition in video game industry history, surpassing Microsoft's 2020 acquisition of Bethesda for $7.5b, and Tencent's 2016 acquisition of Clash of Clans studio Supercell for $8.6b. Activision Blizzard had a similar deal in 2015 when they bought Candy Crush developer King for $5.9 billion.

Zynga's most well-known games include FarmVille and Words with Friends, although Farmville closed down permanently in December 2020. Take-Two — the third-largest game company in the West after Activision Blizzard and EA — owns 2K, Rockstar, and Ken Levine's new studio Ghost Story Games, so they're responsible for massive series like Bioshock, Borderlands, XCOM, and Grand Theft Auto.

Zynga is also developing Star Wars: Hunters, which will be coming to Switch this year.

Chairman and CEO of Take-Two, Strauss Zelnick, spoke about the deal in an official statement:

“We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry."

Frank Gibeau, Zynga's CEO, had similar sentiments to express:

“Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s best-in-class capabilities and intellectual property will enable us to further advance our mission to connect the world through games while achieving significant growth and synergies together.”

A lot of business buzzwords, to be sure, but the general sentiment is that T2 is looking to diversify their portfolio with mobile games, and bring their core franchises to mobile. It doesn't hurt that Zynga has a lucrative line in poker, too.
Take-Two's big expansion is scooping up the leftovers of Don Mattrick's other mess. All that money from GTA5 and it's pumped into F2P mobile games. The direction they're going... Milking GTA5 for all it's worth, F2P mobile, microtransactions, ad spam, and I assume NFTs. I get wanting to expand into mobile. The mobile game market dwarfs console and PC, but yuck.

It'd be great if they invested more of that cash into GTA6 and getting that out, Read Dead, or some new IP deep in scope. Instead we'll probably get a mobile GTA farming sim where you steal some tractors and watch a few ads for seeds.
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Can't remember last time I played, even less enjoyed, a Zynga game. Truth is, they do bring in a lot of money as OP describes
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That's pretty wild... $12 billion is not cheap at all. I know Zynga's had an office in Toronto for a pretty long time also. In comparison, Facebook bought Oculus for only $2-3 billion and changed their company to Meta and focus on VR.
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ManCaveGamer wrote: That's pretty wild... $12 billion is not cheap at all. I know Zynga's had an office in Toronto for a pretty long time also. In comparison, Facebook bought Oculus for only $2-3 billion and changed their company to Meta and focus on VR.
Hmmm, at first I read this and was like 'meh, another big buyout', but you've put it in perspective. Unless I'm missing something, Microsoft got a much better deal at $7.5 Billion for ZeniMax and that was only a year ago. The Oculus deal was further back but at least it was an up and coming company and there wasn't a debt issue. Something here seems off to me.
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[OP]
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I think Zenimax is a much better deal as well. Zynga of all to go for, I don't like anything they've made. If I thought about expanding into mobile, they wouldn't be up there on my list, especially at that price point. Almost $13B is nuts. I doubt I'll be interested in anything they do on mobile.

You look at something like this though.

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I wonder how much of the acquisition is to get the crazy amount of data they must have on how to best make money in the mobile space, and access to their customer base. I wouldn't think the games IP they own would be worth that much (aside from the amount they are currently making off of them)
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Caerus wrote: I think Zenimax is a much better deal as well. Zynga of all to go for, I don't like anything they've made. If I thought about expanding into mobile, they wouldn't be up there on my list, especially at that price point. Almost $13B is nuts. I doubt I'll be interested in anything they do on mobile.

You look at something like this though.

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Yeah it looks like there is a lot of possible profit in mobile still. Just that company at that price with debt, but I guess they're sewing thing beyond that.
Wasn't the last GTA trilogy release just their mobile games ported over? Maybe they're going to the same stellar job for Farm Heroes etc. Console peeps will definitely flock to that Smiling Face With Open Mouth
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Mobile is it because you can't sell the consoles in many places...but everyone has a phone it seems...
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Caerus wrote: I think Zenimax is a much better deal as well. Zynga of all to go for, I don't like anything they've made. If I thought about expanding into mobile, they wouldn't be up there on my list, especially at that price point. Almost $13B is nuts. I doubt I'll be interested in anything they do on mobile.

You look at something like this though.

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this graph is a bit subjective because switch could be considered handheld. they would have to determine which proportion of players use the switch as a home console vs a handheld.
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johncraven wrote: this graph is a bit subjective because switch could be considered handheld. they would have to determine which proportion of players use the switch as a home console vs a handheld.
I thought the same thing, but maybe it's because the Switch is more a hybrid. Handhelds sure don't lend themselves as well as it does to be played on TV's. I guess they lump it into the consoles heading.
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How is zynga still a thing? Havent heard anyone mention farmville in a decade lol
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RevolverOcelot wrote: How is zynga still a thing? Havent heard anyone mention farmville in a decade lol
Apparently quite big in the mobile gaming world.. Was reported that they were going shy of $3B in revenue for 2021... All about them micro transactions
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sumtimw0ng wrote: Apparently quite big in the mobile gaming world.. Was reported that they were going shy of $3B in revenue for 2021... All about them micro transactions
Aside from mobile revenue, I also read that some of the motivation behind acquiring Zynga is due to an ad platform that they own. I'm sure that, coupled with the acquisition of the user data helps broaden the appeal from a marketing standpoint as well.

What's interesting is that Microsoft's acquisition of Activision also gives it King, which produces games like Candy Crush... will be interesting how that plays out moving forward.
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Caerus wrote: I think Zenimax is a much better deal as well. Zynga of all to go for, I don't like anything they've made. If I thought about expanding into mobile, they wouldn't be up there on my list, especially at that price point. Almost $13B is nuts. I doubt I'll be interested in anything they do on mobile.

You look at something like this though.

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Who made this photo chart, lol?

It claims on there that Xbox was the first console that had an integrated Ethernet port, FALSE lmao. It was actually PS2 Slim.
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TheSlav wrote: Who made this photo chart, lol?

It claims on there that Xbox was the first console that had an integrated Ethernet port, FALSE lmao. It was actually PS2 Slim.
Slim came out in 2004, the OG Xbox was 2001.
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TheSlav wrote: I’m an idiot apparently, I thought it was before Xbox but google let me down as it stated the PS2 regular release was in the 2000’s.
Yeah I read the same and did a double take. But once I started scrolling, it showed that the Slim came out 2004 Thumbs Up Sign
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