Zynga, the company whose games made it even more annoying to be Facebook friends with your family, sells to Take-Two. The owners of Rockstar and 2K are planning to buy Zynga shares in a deal that will value the company at $ 12.7 billion (£ 9.4 billion). Take-Two hopes to use Zynga’s social and mobile expertise to make more games based on their games. Of course, #business and all, but I’d rather spend that much money on 9.8 billion Greggs hot dogs instead of Grand Theft Autoville or something.
Take-Two announced yesterday that they are seeking to buy all Zynga shares by paying a mix of cash and Take-Two shares to shareholders. It will value the company at $ 12.7 billion, which is frankly an imaginary amount of money. What are even numbers at this business level?
Take-Two and Zynga’s boards of directors have approved the deal, though it is still dependent on shareholders and regulators giving the green light. They expect to complete it sometime from March to the end of June.
Along with taking advantage of Zygna’s games, Take-Two hopes their experience will be combined with Take-Two’s own library of games to form “an industry-leading portfolio”. They say “there is a meaningful opportunity to create mobile games and new cross-platform experiences” for “many” of their established series. Take-Two already makes some mobile games internally, like NBA 2K, but Zynga boasts nearly 3,000 people and a whole lot of experience. They earn more than FarmVille, obvs.
Take-Two is not currently announcing any specific planned projects. But by and large, I would expect them to continue to dilute everything they own as much as they can with spin-offs, and twist as much value as possible from these #ips and #brands through a belief (perhaps founded , unfortunately) that people are most interested in famous names. It’s business, honey. And this is the consolidation of the video game industry.