The gaming giant Take-Two Interactive is the talk of the town after its recent acquisition announcement of the popular mobile-based gaming company Zynga Inc. Take-Two Interactive is already known for owning some of the biggest brands in the video game industry. They acquired the renowned studio behind the Grand Theft Auto series: Rockstar Games.
The American company also owns 2K Games, the studio behind popular games like WWE, NBA, Bioshock, and many more. But looks like acquiring Zynga Inc. has turned out to be a little problematic for Take-Two. The company’s share prices took a heavy fall after the acquisition announcement, leaving the community surprised.
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Take Two's stock price dropped ~15% yesterday while Zynga is up ~40%, on the news of the acquisition.
– TTWO is paying a 64% premium for Zynga to limit counter offers. Some investors believe it's overpriced.
– Investors also unsure about synergy between the two. pic.twitter.com/BHn9ABXOfJ
— Daniel Ahmad (@ZhugeEX) January 11, 2022
On the 11th of Jan 2022, Twitter user “Daniel Ahmad” shared this surprising piece of news. According to Daniel, after the news of the acquisition, Take-Two’s share prices dropped by 15%. But that’s not the case with the company that has been acquired, Zynga Inc.
In fact, Zynga Inc. shares went up by a whopping 40% which is just insane.
More insights into Take-Two Interactive acquiring Zynga Inc.
Fans must be wondering about the reason behind both the company’s share price movement but so far, the companies have released absolutely no details on this. According to the above tweet, however, Take-Two is paying a massive premium of 64% to limit counter-offers for this acquisition.
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Some of the investors also believe that this amount is overpriced. Moreover, many investors are also uncertain about the synergy between both companies.
Also, many fans might be unfamiliar with the total amount Take-Two paid to make this acquisition possible. The popular mobile game publisher Zynga Inc. has been valued at a whopping $12.7 billion for this deal, which is astonishing. Zynga Inc. are best known for their games FarmVille, Words with Friends 2 etc.
It’s likely that both the companies will release more details about this all in the coming few days which will clear all the fans and investors’ doubts.
Comment below and share your views on this deal.
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