Take-Two to spend $ 12.7 billion to buy Zynga

The publisher Take-Two Interactive Software announced on January 10 that it was preparing to buy the Zynga studios for the sum of $ 12.7 billion (11.2 billion euros). This marriage between the publisher of the successful game Grand Theft Auto V (2013) and the creator of games for smartphones and tablets at the origin of games for the general public FarmVille may astonish. Here are the main reasons for this merger.

The companies have indicated that they are above all looking for synergies. “This strategic combination unites our best console and PC franchises with a premier mobile gaming platform, which has a history rich in innovation and creativity.”, welcomed, in a statement, the CEO of Take-Two, Strauss Zelnick.

This repurchase could thus presage new variations of the flagship licenses of Take-Two on this medium. “Combining Zynga’s expertise in mobile and next-generation platforms with Take-Two’s strike force and intellectual property will allow us to go even further. (…) »Zynga boss Frank Gibeau said.

Strauss Zelnick also insisted that Take-Two is looking for new growth levers on a “The fastest growing segment of the interactive entertainment industry. “

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In 2021, the specialist firm Newzoo estimated that the mobile game would have generated nearly 93 billion dollars in revenue. That’s more than the PC gaming and console gaming industry combined – with estimated revenues of $ 36.7 billion and $ 50 billion, respectively.

The strategy at work behind the takeover of Zynga by Take-Two is also reminiscent of the one that pushed Activision Blizzard, the leader in video game publishing in the United States, to buy King for 5.4 billion dollars. euros in 2015.

This buyout will also bring together groups located at both ends of the United States. On the one hand, the buyer is based on the East Coast, New York. Founded in 1993, Take-Two owns some of the best-known licenses in the industry, issued by its subsidiaries Rockstar Games (Grand Theft Auto, Red Dead Redemption) or 2K (Bioshock, Civilization Where NBA 2K).

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Zynga is based on the West Coast in San Francisco. Launched in April 2007, the group first made a name for itself through the development of games playable on web browsers. He then enjoyed great success in the early 2010s thanks to the success on Facebook of his farm management game. FarmVille.

Zynga launched the third episode of the

Despite the notable successes of the games Word With Friends and Zynga PokerZynga, however, has struggled since 2013. The company has been slow to bring its games to mobile, unlike its rival King Digital Entertainment, at the origin of Candy Crush Saga.

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And FarmVille Not as popular as it was a decade ago, Zynga has succeeded in enriching its portfolio of very consumer titles. The company has seen new successes such as High Heels, which was on the list of the ten most downloaded free games for iPhone in 2021 or Hair Challenge, one of the most downloaded free games on the iPad in 2021, as well as puzzle games Toon Blast and Harry Potter, Riddles and Spells.

In 2022, it will decline a new Hollywood franchise on mobile and Nintendo Switch with Star Wars : Hunters.

Zynga was very successful in 2021 with the game “High Heels!
  • An expensive paid transaction

The transaction is due to be finalized by June via Take-Two’s buyout of Zynga shares. This acquisition at more than 12 billion dollars is one of the most expensive ever observed in the video game industry, according to the specialized media Video Games Chronicle.

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This takeover thus exceeds the acquisition of the Finnish studios Supercell (Clash Royale, Clash of Clans) by the Chinese group Tencent for more than $ 10.2 billion, in 2016, and that of the American group ZeniMax (owner of Bethesda studios and id Software) by Microsoft for $ 7.5 billion, in 2021.