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Take-Two Completes Its Zynga Acquisition: Deal Value, Terms and Timeline

Take-Two completed its Zynga acquisition in May 2022. Here’s how the $12.7 billion announcement valuation differs from the final shareholder terms and later accounting value.
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Take-Two Interactive completed its acquisition of Zynga on May 23, 2022, making the mobile-game publisher a wholly owned subsidiary. The often-quoted $12.7 billion figure was the deal’s approximate enterprise value when announced in January 2022—not a cash-only price or the final value of the shares delivered at closing.

How much did Take-Two pay for Zynga?

Take-Two and Zynga announced an approximate $12.7 billion enterprise value on January 10, 2022. Their valuation reference was $9.86 per Zynga share, based on Take-Two’s closing share price on January 7. That reference consisted of $3.50 in cash and $6.36 in Take-Two stock value per Zynga share. The announcement described the offer as a 64% premium to Zynga’s January 7 closing share price. Take-Two and Zynga’s announcement

Enterprise value is not the same measure as cash paid to shareholders, nor is it interchangeable with the closing exchange terms or later accounting figures. The announcement’s $6.36 stock component was a value calculated using a reference share price; it did not specify that each Zynga share would ultimately receive a fixed number of Take-Two shares.

What did Zynga shareholders receive at closing?

At completion, Take-Two reported that each Zynga share was exchanged for $3.50 in cash plus 0.0406 shares of Take-Two common stock. The share ratio differed from the announcement’s $6.36 stock-value reference because the agreement included a collar that adjusted the exchange ratio based on Take-Two’s share price. These are successive descriptions of the deal at different points, not contradictory terms. Take-Two’s completion announcement and the merger agreement document the closing consideration and collar.

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When did Take-Two complete the Zynga acquisition?

Date Milestone
January 10, 2022 Take-Two and Zynga announced their agreement for a cash-and-stock acquisition.
May 19, 2022 Both companies announced that their stockholders had approved the transaction proposals. They expected to close on May 23, before market open, subject to remaining customary conditions. Approval announcement
May 23, 2022 Take-Two announced completion. Zynga became a wholly owned subsidiary.

The January agreement also described a proposed financing arrangement and a 45-day go-shop period. Those provisions concerned the deal process; they were not alternative final consideration or evidence of a competing completed bid. Merger agreement

Why did Take-Two buy Zynga?

The companies presented the deal as a way to unite Take-Two’s console and PC franchises with Zynga’s mobile publishing platform and free-to-play expertise. Take-Two said the combination would expand and diversify its mobile business and bring together the companies’ game intellectual property. The franchises named in the January announcement included Grand Theft Auto, Red Dead Redemption, NBA 2K, Civilization, Borderlands and BioShock on Take-Two’s side, and FarmVille, Words With Friends, Zynga Poker, CSR Racing and Merge Dragons! on Zynga’s. These were examples cited by the companies, not a complete inventory or a statement about any game’s current availability. Joint announcement

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Synergies and bookings were projections

In January 2022, management forecast approximately $100 million in annual cost synergies within the first two years after closing and more than $500 million in annual Net Bookings opportunities over time. These were forecasts, not reported results. The company materials cited here do not establish whether either target was ultimately achieved. January 2022 announcement

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Why do later filings cite a different value?

Take-Two’s fiscal 2024 Form 10-K confirms the May 23, 2022 closing and describes the acquisition as part of its strategy to expand selectively its owned intellectual property and diversify and strengthen its mobile offerings. The filing reports an acquisition-date fair value of consideration of $9.5218 billion. That is an accounting measure at the acquisition date, not a restatement of the approximately $12.7 billion enterprise value announced in January 2022. The filing also records acquired developed game technology, brands, game engine technology, a user base and other intangible assets. Take-Two fiscal 2024 Form 10-K

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