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posted by martyb on Tuesday January 11, @07:26AM   Printer-friendly [Skip to comment(s)]
from the big-deal dept.

Why Take-Two wants to pay nearly $13 billion for the maker of FarmVille

Take-Two Interactive just announced its intent to buy FarmVille developer Zynga for $12.7 billion in what could be the biggest acquisition in video game history. It's an absolutely massive deal; to put it in perspective, the acquisition would be $5 billion more than Microsoft's $7.5 billion purchase of the parent company of Skyrim maker Bethesda Softworks. You could throw in the money Disney paid for Lucasfilm and still have cash left over.

So what is Take-Two getting for its money? Yes, big Zynga games like FarmVille, Words With Friends, and High Heels! will join Take-Two's own roster of franchises that includes Grand Theft Auto, NBA 2K, and Civilization. But perhaps more importantly, Take-Two will now be able to use Zynga's expertise building hugely popular free-to-play mobile titles so it can make new hit games based on its own properties. In fact, Zynga will be the new brand for Take Two's mobile efforts, and current Zynga CEO Frank Gibeau will lead that organization, indicating the potential direction of Take Two's mobile future.

Developers across the industry have been bringing big franchises to mobile and earning a lot of money doing so. PUBG Mobile was the top-grossing mobile game worldwide in November 2021, earning "close to" $254 million, according to Sensor Tower. League of Legends: Wild Rift, the mobile-optimized version of the hit PC MOBA, was in the top ten for App Store revenue that same month. Pokémon Go brought in more than $5 billion in revenue as of its five-year birthday in July, Sensor Tower reported. The Tencent-owned studio that makes Call of Duty: Mobile reportedly earned $10 billion in 2020.

Also at Ars Technica, CNBC, and Wccftech.


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  • (Score: 2, Funny) by krishnoid on Tuesday January 11, @07:35AM (1 child)

    by krishnoid (1156) on Tuesday January 11, @07:35AM (#1211730)

    I can't see any problems with this acquisition [cnet.com] or the gameplay Zynga brings from their existing titles. People will be happily clicking away [cowclicker.com] soon enough.

    • (Score: 1) by khallow on Tuesday January 11, @03:26PM

      by khallow (3766) Subscriber Badge on Tuesday January 11, @03:26PM (#1211779) Journal
      It's even part cash [take2games.com].

      Under the terms and subject to the conditions of the agreement, 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 of the transaction. The purchase price represents a premium of 64% to Zynga’s closing share price on January 7, 2022.

      Sounds like some Take-Two stock holders got mugged. Shouldn't have been a bit of cash in that transaction.

  • (Score: 3, Touché) by looorg on Tuesday January 11, @11:20AM (1 child)

    by looorg (578) on Tuesday January 11, @11:20AM (#1211737)

    Farmville is still a thing? I thought those players had moved on to like Stardew Valley and such things. I'm actually a bit surprised.

    Take-Two will now be able to use Zynga's expertise building hugely popular free-to-play mobile titles so it can make new hit games based on its own properties.

    As a player that doesn't sound very great or good at all. That is not what I like in my games.

    • (Score: 2) by Freeman on Tuesday January 11, @02:49PM

      by Freeman (732) on Tuesday January 11, @02:49PM (#1211768) Journal

      Farmville is a thing, because people get to it via their web browser. They don't have to install steam or a game and they don't have to pay for it. Then again, they typical Farmville player has likely spent more on random "app coins" or the like to have a substantial Steam collection by now.

      --
      Forced Microsoft Account for Windows Login → Switch to Linux.
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