Take-Two To Buy Farmville Creator Zynga For $12.7 Bn

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Take-Two Video game publisher sets to acquire “Farmville” creator Zynga for $12.7 billion, in a major mobile gaming push by the maker of “Grand Theft Auto.”

The deal comes as Take-Two plans more smartphone versions of its games, which also include Red Dead Redemption and NBA2K.

The transaction prices Zynga at $9.86 per share, a 64 per cent premium on Friday’s share price.

About one-third of the payment will be in cash and the rest in Take-Two shares.

New York-based Take-Two had revenues of $3.4 billion at the end of its last fiscal year and just shy of 5,100 employees. San Francisco-based Zynga had revenues of $2.0 billion and about 3,000 employees.

Zynga shares soared nearly 50 per cent on the Nasdaq in electronic trading before the opening bell on Wall Street, while shares of Take-Two fell by 10.5 per cent.

– Parrot

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