Take-Two Interactive, the gaming publisher that has to its credit games like NBA 2K and Grand Theft Auto, has announced a massive deal that involves them buying Zynga, a major mobile game company, for $12.7 billion.
Once (and if) this deal gets finalized, it will become the biggest sale made in the history of video games.
A Take-Two Interactive spokesperson stated in a press release that “unifies highly complementary businesses, including Take-Two’s best-in-class portfolio of console and PC games and Zynga’s industry-leading mobile franchises.”
Once this merger happens, Take-Two Interactive would be able to bring many of its popular gaming franchises like GTA, XCOM, Civilization and BioShockto mobile based platforms.
Addressing the investors, Take-Two CEO Strauss Zelnick said, “We believe we have the best collection of console and PC intellectual property in the interactive entertainment business and it’s basically nearly entirely un-exploited from mobile and free-to-play around the world.”
“Zynga’s best-in-class studios can help us develop that property. Their best-in-class free-to-play mobile publishing operations can bring that to consumers and delight those consumers and create recurrent consumer spending along the way”, he further added.
Along with Words With Friends and FarmVille, some of the biggest games released by Zynga this year include Zynga Poker and CSR Racing 2. The company has also come up with a bunch of slot machine games that are available for free. Zynga has made a lot of money through these games with the help of micro-transactions and in-game advertising. Zynga also has plans to launch Star Wars: Hunters, a combat game that, after being delayed for a while, will soon release on Nintendo Switch, Android and iOS sometime this year.
It is important to note that the deal hasn’t been finalized yet. Apart from going through regulatory review, Zynga also has the right to accept a better proposal from another entity in the next 45 days. The deal offered by Take-Two is far from being bad. The publisher has offered $12.7 billion that happens to be 64% more than the existing stock price of Zynga. Right now, there is no information about somebody planning to offer a higher price.