The deal is valued at around $12.7 billion and Take-Two Chief Executive Strauss Zelnick said the deal will benefit both companies.
Zynga gets access to the best-selling game franchises while Take-Two gets player analytics, advertising and mobile game making technology that so far it’s lacked.
“What we’ve found is that great entertainment wins. It’s really hard to build organically.”
Ironically Zynga knows a bit about organic growth because it makes major social games like FarmVille and Words With Friends. Take-Two already owns game publishers Rockstar, which is behind Grand Theft Auto and Red Dead Redemption, and 2K, known for BioShock, Borderlands, Civilisation and NBA 2K.
The deal doesn’t close until midyear, The move marks the latest instance of a large game maker acquiring companies with mobile and social networking expertise to help expand their lineup.
Activision Blizzard bought Candy Crush maker King in 2015 for about $6 billion, and Electronic Arts has paid nearly $5 billion over the past decade to buy a string of social, mobile and casual-focused gaming companies including Playdemic, Glu Mobile, and Plants vs. Zombies maker PopCap Games.
Aside from combining two companies with different capabilities, Zelnick said the Zynga acquisition will also help as Take-Two evaluates emerging Web3 technologies, including NFTs and cryptocurrency.