Take-Two Interactive, maker of Theft Auto and Red Dead Redemption, is acquiring Zynga, maker of FarmVille and Words With Friends, for cash and stock for an enterprise value of about $12.7 billion (approximately Rs 94,030 crore).

Zynga shareholders will receive $3.50 (approximately Rs 260) in cash and $6.36 (approximately Rs 470) in Take-Two common stock per outstanding Zynga share at the close.

Take-Two said on Monday it expects to save $100 million (about 7.4 billion rupees) in annual costs.

The transaction is expected to close in Take-Two’ quarter of fiscal 2023 (ending June 30). It still approval from Take-Two and Zynga shareholders.

Shares of San Francisco-based Zynga rose 52 percent to $9.14 (about 680 rupees). Shares in York City-based Take-Two Interactive Software fell more than 8 percent to $150.66 (about Rs 11,160).

“Combining Zynga’ expertise in mobile and next-generation platforms with Take-Two’s best-in- capabilities and intellectual property will allow us to further advance our mission to connect the world through gaming while achieving significant growth and synergies, ” said a statement from Take-Two Interactive.

The company said the deal is expected to make Take-Two a leader in mobile gaming, with mobile expected to account for more than 50% of its net bookings in fiscal 2023 (compared to an estimated 12% in fiscal 2022).

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By Rebecca French

Rebecca French writes books about Technology and smartwatches. Her books have received starred reviews in Technology Shout, Publishers Weekly, Library Journal, and Booklist. She is a New York Times and a USA Today Bestseller...