Take-Two Acquires Zynga for $12.7 Billion

The publisher of games like Grand Theft Auto and Borderlands wants to expand into the mobile space.

Take-Two, the publishing house that is the parent company of 2K, Private Division, and publishes games like Grand Theft AutoBioshock, and more really, really wants into the mobile space. They see it as another avenue for making money, to the point where they’re willing to spend $12.7 billion on it.

That’s

a lot of money.

As comparison, Microsoft purchased Bethesda for $7.5 billion. They bought Skype for $8.5 billion. They bought Mojang for $2.5 billion. Tencent bought Supercell, another large mobile game company, for $9.5 billion. If you repeated the Take-Two Zynga sale 460 more times, you’d roughly have the same amount as the entire U.S. government spent in 2021.

Take-Two is accomplishing this deal by making an agreement with Zynga and buying all their shares, taking complete ownership of the company. In an investor meeting shortly after the sale was announced, Take-Two CEO Strauss Zelnick explained that they want to get into the mobile space and Zynga offers the proficiency and infrastructure to take core IPs and bring them to the mobile space.

If you’re reading that as, Take-Two wants a way to get Grand Theft Auto Online to mobile devices in a way that continues to generate profit for what is already the most profitable piece of media of all time, you’d likely be correct. Moreover, it gives them a chance to take other properties under their umbrella — KerbalBorderlandsMafia — and either make ports or make mobile versions that can leverage those names. It especially makes sense in areas where those IPs may not have the muscle to fulfill a brand new $70 console game but can get something off the ground on mobile.

But again, wow that’s a lot of money. That’s so much money! It might actually be an inadvisable amount of money to spend on Zynga, even when you consider their massive building in downtown San Francisco. Take-Two seems confident that they’re going to bring in more money than they cost, though, it’s mainly just a question of how many years it will take.

Disclaimer: Tencent, a company mentioned in this post, is the parent company of Fanbyte.