What you need to know
- Take-Two Interactive plans to acquire FarmVille maker Zynga.
- The deal has been valued at $12.7 billion.
- Take-Two expects the deal to close before the end of June 2022.
The acquisition will bring Zynga's best mobile games such as FarmVille, CSR Racing, Empires & Puzzles, Golf Rival, Hair Challenge, Harry Potter: Puzzles & Spells, High Heels, Merge Dragons, Toon Blast, Toy Blast, and Words With Friends under Take-Two's umbrella.
Take-Two says the acquisition will allow it to "capitalize on the interactive entertainment industry's strong tailwinds" and become a leader in the mobile games sector. According to recently published data from Newzoo, mobile games will generate revenues of $116.4 billion in 2024.
Strauss Zelnick, Chairman and CEO of Take-Two, said in a statement that, "this strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity."
The company expects mobile gaming to comprise over 50% of its Net Bookings in fiscal year 2023, up from 12% in fiscal year 2022. Take-Two has also revealed that it will create new mobile games for its iconic PC and console titles. Although Take-Two hasn't confirmed it yet, there's a good chance that the combined company could release a new free-to-play GTA game to capitalize on the massive popularity of GTA Online.
It is worth noting that this isn't the first time that a leading publisher has bought a mobile game developer. Back in 2015, Activision Blizzard spent $5.9 billion to acquire Candy Crush maker King. EA also stepped into the mobile gaming space last year by acquiring Kim Kardashian: Hollywood developer Glu and Golf Clash developer Playdemic.
