Daily Management Review

GTA owner announces $12.7B purchase of mobile giant Zynga


Owner of the rights to the game GTA has announced the purchase of developer Zynga, which also produces the game FarmVille. Zynga shares rose nearly 50 percent on the premarket on the news.

Steve Petrucelli
Steve Petrucelli
Take-Two, which owns the rights to the game GTA, has agreed to buy developer Zynga, known for mobile games such as FarmVille and Words With Friends, for $12.7bn.

The deal is expected to close between April and June and will be paid for in cash and shares. Zynga shareholders will be compensated about $9.86 for each share of the company they own, including $3.5 in cash and $6.36 in Take-Two shares.

That's about 64% more than Zynga's share price at the close of trading on Friday, January 7, notes The Wall Street Journal. Zynga's securities were $6 flat at the close that day, up nearly 50% at Monday's pre-market.

source: bloomberg.com