The maker of hit video games including the Grand Theft Auto franchise is to acquire Zynga, best known for its FarmVille and Harry Potter titles, in a $12.7bn deal that will create a global console and mobile gaming giant.
With hits including FarmVille, Zynga was once the most successful developer on Facebook, and subsequently pivoted to mobile gaming to cash in on the boom in smartphone ownership. Despite the entertainment boom during a period of successive Covid lockdowns, Zynga’s share price fell by more than a third last year. It surged by almost 50% when news of the Take-Two deal was announced on Monday.
“We are incredibly excited to have found a partner in Take-Two that shares our commitment to investing in our players, amplifying our creative culture and generating more value for stockholders,” said Frank Gibeau, chief executive of Zynga.
The deal is the latest consolidation in the gaming sector in recent years. Take-Two was outbid by rival Electronic Arts in the $1.2bn takeover of British video games maker Codemasters in 2020. That same year, Microsoft bought the parent of Bethesda, the company behind games including the Fallout and Elder Scrolls franchises, for $7.5bn.