TAKE-TWO BUYS ZYNGA

Take-Two Interactive is buying mobile gaming company Zynga for $12.7 billion with a mix of cash and stock, marking the latest blockbuster acquisition in a string of major deals in the video game industry.

The company announced Monday that it would acquire all outstanding shares of Zynga at $9.86 a share, a 64% premium to Zynga’s closing price Friday. Shares of Zynga skyrocketed over 50% in U.S. pre-market trade.

Take-Two said Zynga shareholders will receive $3.50 in cash and $6.36 in Take-Two stock for each share of Zynga outstanding at the closing of the transaction. The deal, which is subject to regulatory and shareholder approvals, is expected to close by June 30, 2022.

While FarmVille is Zynga’s most well-known game, it has published several other notable titles including CSR Racing, Empires & Puzzles and Harry Potter: Puzzles & Spells, which is based on Warner Bros.′ Harry Potter franchise.

Take Two, which is very known for Grand Theft Auto and other blockbuster console and PC franchises, is hoping to tap into the continued growth of mobile gaming, which accounts for more than half of the entire video game industry.