Take-Two Interactive has announced its intention to purchase the entire business of Zynga for the staggering sum of $12.7 billion. Branching out into the free-to-play mobile gaming space is the main reason behind this move but it should also help Zynga’s console and PC ambitions in the future.
Take-Two is the owner of some of the most massive franchises in gaming right now. These include Grand Theft Auto, Borderlands, Red Dead Redemption 2, NBA 2K, BioShock, Mafia, and more. Zynga on the other hand has revolutionized casual gaming with titles like Farmville, Words with Friends, Zynga Poker, and more.
The $12.7 billion valuation of Zynga alone tells you how big of a market free-to-play mobile gaming is. To give you a perspective, Microsoft’s 2020 purchase of Bethesda parent, Zenimax Software cost $7.5 billion. And that deal included franchises as grand as The Elder Scrolls, Fallout, Doom, and others.
Following this deal, Zynga will become Take-Two’s new brand focusing on the company’s mobile efforts. Zynga CEO Frank Gibeau will lead that organization. Take-Two has clearly said that the company sees “untapped potential” in bringing its console and PC properties to mobile. So perhaps, a mobile version of Borderlands or GTA Online isn’t off the cars.
Frank Gibeau, CEO of Zynga, said, “I am proud of our team’s hard work to deliver a strong finish to 2021, with one of the best performances in Zynga’s history. We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture, and generating more value for stockholders. With this transformative transaction, we begin a new journey which will allow us to create even better games, reach larger audiences and achieve significant growth as a leader in the next era of gaming.”
Take-Two Interactive hopes to complete its acquisition of Zynga during the first quarter of its fiscal year 2023.