Take-Two has agreed to purchase Zynga. The price of the issue is $12.7 billion

The video game market continues to consolidate. January is not a hindrance to the process. Take-Two has announced an agreement with Zynga. Soon the GTA publisher will become the owner of one of the largest mobile companies on the market.

• According to the terms of the deal, Take-Two is going to acquire all Zynga shares in circulation (we are talking about outstanding shares, shares that are owned by both external investors and the owners of the company).
• For each Zynga share (their number may eventually reach 58.5 million), $9.86 will be paid ($3.50 in cash and $6.36 in Take-Two shares). This is plus 68% to the price of one share at the closing of the exchange on January 7.
• As a result, the current shareholders of Take-Two will own from 67.2% to 70.4% of the combined company, and Zynga shareholders will own a stake whose size ranges from 29.6% to 32.8% before the transaction is completed.
• Part of the funds for the purchase of the mobile company Take-Two was received from the American financial holding J.P. Morgan. He allocated $2.7 billion for the deal with Zynga.
• The takeover was agreed by the top management of both companies. The deal should be completed by the end of this June.
• The management of Take-Two is confident that over time the combined company will be able to earn up to $500 million a year in net receipts (net bookings).