PC gaming giant Take-Two announced that it has taken a big step to enter the mobile gaming space by acquiring Zynga for approximately $12.7 billion. Rockstar Games, which produces big games like Take-Two, Grand Theft Auto, Red Dead Redemption, Bioshock and others, already includes Codemasters and 2K. Zynga develops popular mobile games such as CSR Racing, FarmVille and Words with Friends.
Take-Two said the deal will result in 12-month pro forma net bookings worth $6.1 billion, meaning it will become one of the largest gaming companies in the world. “This strategic combination brings together our best-in-class console and PC series with a market-leading, diversified mobile publishing platform with a rich history of innovation and creativity,” said Strauss Zelnick, Chairman and CEO of Take-Two. In addition, this deal will help Take-Two save nearly $100 million a year two years later.
Zynga made a series of acquisitions earlier last year, including the studio behind Torchlight 3. In the past, the company has sometimes relied on acquisitions to find the most popular games in the mobile gaming market, which can change often and rapidly. Still, Take-Two says the mobile industry generated $136 billion in revenue in 2021 and is currently growing over 8 percent, meaning it has revenue to generate. The company now claims that half of its net revenues (the net amount of products and services sold digitally or physically) will come from the mobile platform.
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