Take two Interactive, Inc. Announced that it has completed the acquisition of the mobile game giant Zinga .7 12.7 billion. The deal was announced in early January and will bring Zynga’s popular games, such as Farmville and Words With Friends, under ownership of Take-Two. The terms of the consolidation agreement were also disclosed, under which each Ginga shareholder received $ 3.50 in cash and 0.0406 shares of Take-to-common stock per Ginga common stock. Here we will discuss how this consolidation agreement will affect the gaming industry.
How the Tech to Ginga Consolidation Agreement will affect the gaming industry
The merger merges the two gaming powerhouses, as is popular for tech-to-interactive console and PC games, where Ginga is primarily known for its mobile gaming genre. However, Take-Two has multiple mobile game titles as it expands its franchises to mobile which will offer the new entity a significantly larger holding in the gaming space.
Zynga will also benefit from this integration as Take Two will offer a large library of franchises and IPs from which it can create new mobile gaming experiences for games such as Red Dead Redemption, Midnight Club, NBA 2K, BioShock and many more. Moreover, Ginger IP has the potential to find new traction in different formats, platforms and screens.
The deal is one of several significant gaming acquisitions announced since the beginning of the year. One week after the announcement of the merger of Take-Two and Ginga, Microsoft announced the acquisition of its gaming giant Activision Blizzard in a $ 68.7 billion all-cash deal. Just two weeks after Microsoft announced its deal, Sony also announced plans to acquire Bungie in a 3.6 billion deal. Studio Bangi is responsible for creating games like Halo and Destiny.
Take-Two’s response to this consolidation agreement
“We are thrilled to be able to complete our integration with Ginger, which is an important step in accelerating our net bookings from mobile, the fastest growing segment of interactive entertainment, as well as providing us,” said Tech-to-CEO Strauss Jelnick in a statement. Adequate cost adjustment and revenue opportunities. Each of our teams has a strong history of operational performance, and together, we hope to enhance our financial profile on a larger scale and profitability, paving the way for us to value strong shareholders. ”
Ginger’s response to this consolidation agreement
Ginger CEO Frank Gibeu said, “We are excited for Ginger’s next-generation mobile platform, free-to-play skills, a variety of game offers and an incredible team to join the take-two family. We look forward to continuing to build an unparalleled portfolio of games that will reach a wider market and continue to grow for this next chapter in Ginger’s history. ”
Who will play a role in the unified entity?
Earlier, Tech-Two announced that Jelnick Ginga would lead a merged entity with CEO Frank Gibeu. In addition, Bingard Kim, president of Ginger Publishing, was supposed to work with Gibeu, but those plans will not come to light as Kim is leaving Ginga to be the CEO of Match Group.