Take-Two Buys Zynga, Instantly Making It A Mobile Monster
Jan 10, 2022
Are you really a giant game publisher unless you’ve bought yourself a massive mobile arm? Well, Take-Two wanted to join the party, and like Activision Blizzard buying King before it, Take-Two has now bought Zynga , a big force in the mobile games sector, even if it’s not exactly leading public conversation about the medium like it was in the height of Farmville mania. But Zynga never left. All this time it’s been making mobile game after mobile game, and yes, even Farmville still exists. Take-Two is paying $9.86 a share for Zynga in a deal that’s estimated to have an enterprise value of $12.7 billion. Here’s are the two catalogues being combined, with one part of the deal saying that Zynga will help Take-Two adapt its franchises for mobile. Take-Two’s roster includes Grand Theft Auto, Red Dead Redemption, NBA 2K, BioShock, Borderlands, Civilization, Mafia, and Kerbal Space Program. Zynga’s mobile catalog has CSR Racing, Empires & Puzzles, FarmVille, Golf Rival, Hair Challenge, Harry Potter: Puzzles & Spells, High Heels!, Merge Dragons!, Toon Blast, Toy Blast, Words With Friends, and Zynga Poker. Farmville 2
Again, Farmville and then more recently Words with Friends, were Zynga’s big moments in the sun, though most of these games generate significant revenue making Zynga a sizable acquisition target. And before this, Zynga was talking about developing and using “ eco-friendly NFTs ,” so this may also turn into some sort of blockchain play. Take-Two has said that in the wake of this acquisition, more than half of their business will be mobile, which includes mobile titles they already have like GTA ports, in addition to Zynga’s roster. Again, this has become more or the less the norm for giant game publishers. Activision bought King, which continues to print money for them even as other traditional franchises struggle. EA previously bought Glu Mobile for $2.4 billion, over half what Disney paid for all of Star Wars. So, Take-Two doesn’t want to be left out of this market, and these mobile purchases have mostly proven their weight in gold over the years. There are also a few random additions thrown in here, companies that Zynga themselves have bought. That includes Echtra, currently developing Torchlight 3. StarLark, another mobile dev with a huge golf game. And Chartboost, which does mobile ads. Pretty much nothing about this as an industry development is all that surprising, given where things have been trending. Some may be surprised that Zynga is still this valuable after all this time and its past game crazes having died down, but that’s the mobile market for you. Take-Two is currently in the middle of a presentation about the deal, and I’ll update this post with any more relevant information that gets added.