Take-Two unveils web3 ambitions with the acquisition of Zynga
Take-Two Interactive, the parent company of gaming brands Rockstar Games and 2K Games, is inching closer to acquiring Zynga, a mobile game publisher that recently started skewing towards NFTs. A press release unveiled this news on January 10, noting that the two companies have already entered into a definitive agreement. Reportedly, this deal will see Take-Two part with $12.7 billion.
According to the news release, Take-Two will purchase all the remaining Zynga shares in a cash and stock transaction valued at $9.861 per share. The terms of the agreement specify that Zynga shareholders will receive $3.50 in cash and $6.361 in shares of Take-Two’s common stock for each Zynga share they hold.
This price, allegedly, represents a 64% premium to Zynga’s closing share price on January 7, when the companies entered the definitive agreement. The deal is set to end by July 30, pending the approval of both companies, shareholders, and regulators.
The publication further noted that this agreement brings together two global leaders in the interactive entertainment business. It is worth noting that Take-Two is the creator of some of the most beloved video game series, including Grand Theft Auto, Red Dead Redemption, and NBA 2K, among others. On the other hand, Zynga created video games like CSR Racing, Empires & Puzzles, and FarmVille.
Commenting on this deal, Take-Two CEO and Chairman Strauss Zelnick said,
We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry.
A web3-based future
This news comes after Zynga made several announcements, which hinted at the company’s shift toward blockchain-powered games that leverage NFTs.
First came the hiring of Matt Wolf as vice president of blockchain gaming in November 2021. At the time, Zynga said Wolf would spearhead the integration of NFTs and the blockchain into its existing portfolio and IP. Additionally, Wolf would oversee the development of new games that have NFTs as part of the core gameplay experience.
A month later, Zynga entered a strategic partnership with Forte, a leading provider of blockchain solutions for game publishers, to help kick-start its NFT plans. However, the company has not yet announced its first blockchain-powered game.
Banking on the potential of Zynga’s blockchain and NFT foray, Zelnick said this acquisition would help both companies exploit web3 opportunities. He added that this synergy would ensure the Take-two and Zynga combination addresses the web3 opportunities more effectively than either company would have on its own.
Sharing his sentiments on NFTs Zynga’s CEO, Frank Gibeau, said,
In terms of NFTs, it’s very early days. It’s a process that I think conceptually we have a lot of faith and belief in—the idea that players will play-to-earn or play-to-own is a very compelling idea that we think will have legs as the industry develops.