The acquisition will give the combined company 1B+ users, and a strong position in the $180B+ gaming industry.
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You will be hard-pressed to find more opposite games than “FarmVille” and “Grand Theft Auto” (GTA). The former involves managing farm crops with your friends. The latter is a sandbox action game blamed for inspiring real-world carjackings. According to The Wall Street Journal, Two-Take Interactive (the $17B game studio behind GTA) will buy Zynga (FarmVille maker) for $12.7B in a cash-stock deal. Why? Because — like the aforementioned games — opposites attract. Take-Two creates dominant PC and console franchises, including “Red Dead Redemption” and “NBA 2K.” Meanwhile, Zynga — which launched on Facebook in 2007 — is a huge mobile player, including the popular “Words With Friends.” … and be well positioned to gain share in a gaming industry that notched ~$180B in sales last year, per WSJ. There are 3 notable opportunities moving forward: … a ~64% premium on Zynga’s stock price. It may be an overpay, but the deal is on trend with recent gaming acquisitions: Zynga founder and chairman Mark Pincus reflected on the deal by noting that his studio’s 1st Facebook game was poker. It’s fitting that Zynga’s story is now bookended by a huge bet from Take-Two.Both games will now be under one roof
The merged company will have 1B+ users…
Take-Two is paying…
Topics: Entertainment
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