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Take-Two Interactive Software Inc TTWO

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Take-Two Will Acquire Zynga for $12.7 Billion; Combination Will Supercharge Mobile Transformation

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Take-Two announced an agreement on Jan. 10 to purchase Zynga, a mobile game publisher, in a deal valued at $12.7 billion, or $9.86 per share, based on Take-Two’s closing price on Jan. 7. The deal is for $3.50 in cash and $6.36 in equity depending on the closing price of Take-Two. The deal price represents a 64% premium to the unaffected price of Zynga and 20% below the 52-week high. Take-Two will fund the cash portion with cash on hand and a new debt offering. Due to the price collar, Take-Two shareholders will own between 67% and 70% of the combined company post-closing. Zynga does have a go-shop provision for 45 days, which could attract a higher bid.

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Company Profile

Business Description

Found in 1993, Take-Two consists of two wholly owned labels, Rockstar Games and 2K. The firm is one of the world's largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two's franchise portfolio is headlined by "Grand Theft Auto" (345 million units sold) and contains other well-known titles such as "NBA 2K," "Civilization," "Borderlands," "Bioshock," and "Xcom.".

110 West 44th Street
New York, NY, 10036
T +1 646 536-2842
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Sep 30, 2021
Fiscal Year End Mar 31, 2022
Stock Type Aggressive Growth
Employees 6,495