Take-Two is acquiring mobile gaming giant Zynga for $12.7 billion

Deepak Gupta January 10, 2022
Updated 2022/01/10 at 1:55 PM

PC gaming giant Take-Two has announced which is making a big move into mobile gaming with the acquisition of Zynga for a total price of approximately $12.7 billion. Take-Two already owns Rockstar Games, Codemasters and 2K, producing games like Grand Theft Auto, redemption of the red dead, Bioshock and others. Zynga, in turn, produces mobile titles known as CSR race, FarmVille, and words with friends.

Take-Two said the deal will result in $6.1 billion in net 12-month pro forma reserves, meaning it will become one of the world’s biggest gaming companies. “This strategic combination brings our world-class console and PC franchises together with a diverse, market-leading mobile publishing platform that has a rich history of innovation and creativity,” said Take-Two President and CEO Strauss Zelnick. The deal will also help Take-Two save about $100 million annually after two years.

Zynga itself has been on an acquisition streak lately, having acquired the studio from behind Torch 3 beginning of last year. Zynga sometimes relies on acquisitions to find the most popular games in the notoriously fickle mobile gaming market. Still, Take-Two said the mobile industry recorded $136 billion in 2021 and is currently growing more than 8%, so the money is available. Cellular will now account for half of its net bookings (the net amount of products and services sold digitally or physically), the company said.

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