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American gaming giant Take-Two will acquire Zynga for $12.7 billion, or the largest acquisition in gaming history

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At $9.861 per share, the purchase price represents a 64% premium to Zynga's closing price on January 7, 2022.

Rhythm BlockBeats news, on January 11, American game developer and publisher Take-Two announced that it will acquire mobile game developer Zygna for US$12.7 billion. Under the terms of the acquisition, Take-Two will acquire all outstanding shares of social game developer Zynga for $9.861 per share. At closing, Zynga shareholders will receive $3.50 per share in cash and $6.361 in Take-Two common stock. The purchase price represents a 64% premium to Zynga's closing price on January 7, 2022. Existing Take-Two shareholders will own 67.2% of the shares after the transaction closes.

Take-Two said the deal will make Take-Two one of the largest and most diversified mobile game publishers in the industry. Take-Two's pro forma net bookings for the trailing 12 months ending September 30, 2021 are $6.1 billion.

The combined entity is of greater size, with net bookings of Adjusted unrestricted operating cash flow was $769 million. Looking ahead, the combined company expects a CAGR of 14% in net bookings (excluding annual net booking opportunities and any future acquisitions) for Take-Two's three-year period from fiscal 2021 to 2024.