Here is the overview of the transaction. Reading the press release I think this is a great transaction for TTWO and ZNGA. We are seeing a significant spike in the price of ZNGA shares but I would look at TTWO and see if there is an opportunity to buy.
Take-Two to acquire all the outstanding shares of Zynga for a total value of $9.861 per share - $3.50 in cash and $6.361 in shares of Take-Two common stock, implying an enterprise value of $12.7 billion
Transaction represents a 64% premium to Zynga's closing share price on January 7, 2022
Establishes Take-Two as one of the largest publishers of mobile games, the fastest-growing segment of the interactive entertainment industry
Unifies highly complementary businesses, including Take-Two's best-in-class portfolio of console and PC games and Zynga's industry-leading mobile franchises
Creates one of the largest publicly traded interactive entertainment companies in the world, with $6.1 billion in trailing twelve-month pro-forma Net Bookings for the period ended September 30, 2021
Transaction expected to deliver approximately $100 million of annual cost synergies within the first two years after closing, and more than $500 million of annual Net Bookings opportunities over time
With Zynga's stockholders receiving approximately 64.5%1 of the transaction consideration in Take-Two stock, both groups of stockholders will benefit from the combined company's greater scale, enhanced financial profile, and the synergies created through the transaction.
Zynga stockholders will receive $3.50 in cash and $6.361 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing. The transaction is valued at $9.861 per share of Zynga common stock based on the market closing as of January 7, 2022, implying an enterprise value of approximately $12.7 billion.
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