Video game publisher Take-Two Interactive Software (TTWO) on Monday announced plans to buy Zynga (ZNGA) in a cash-and-stock deal worth $12.7 billion. Zynga stock soared on the news but TTWO stock tumbled.
X
Take-Two says the deal will bolster its business in mobile games, the fastest-growing segment of the interactive entertainment industry.
New York City-based Take-Two is best known for console and PC game franchises such as “Grand Theft Auto,” “Red Dead Redemption” and “NBA 2K.” San Francisco-based Zynga makes mobile games such as “Empires & Puzzles,” “Toon Blast,” “Words With Friends” and “Zynga Poker.”
Take-Two will pay a total value of $9.86 per share for Zynga, including $3.50 in cash and $6.36 in shares of TTWO stock. The transaction represents a 64% premium to Zynga’s closing share price on Friday.
Deal Called ‘Strategic Combination’
“This strategic combination…
