Take Two is buying the Farm.
Earlier today, Take Two Interactive (TTWO) said it was mobile gaming company, and Farmville creator, Zynga (ZNGA) for $12.7 billion in cash and stock.
“Take-Two said Zynga shareholders will receive $3.50 in cash and $6.36 in Take-Two stock for each share of Zynga outstanding at the closing of the transaction. The deal, which is subject to regulatory and shareholder approvals, is expected to close by June 30, 2022,” said CNBC.
While Take Two Interactive stock took a hit on the news, weakness may be opportunity – especially with the strength of mobile gaming growth.
According to WCCF Tech:
“The gaming industry has marked another year of record revenue in 2021, according to Newzoo, reaching $180.3 billion. That translates to a growth of 1.4% over the past year, which benefited from global lockdowns caused by the COVID-19 pandemic.”
“In fact, Newzoo itself had anticipated earlier this year that the gaming industry would actually shrink (-1.1%), as they had estimated $175.8 billion of revenues for the full year. The analysts’ expectations were clearly far exceeded, mostly thanks to the mobile sector’s unabated growth (+7.3% year-over-year). The PC and console markets also did better than expected, generating respectively 0.8 billion and 1.2 billion more revenues than previously estimated.”
Again, we’d use weakness as opportunity with TTWO.
