10 January Take-Two is the publisher of series of games like GTA, Red Dead Redemption and Mafia - announced the purchase of mobile game developer Zynga for $12.7 billion. Publisher could overpay for unprofitable Zynga, which upset investors. Details of the deal 7 January, Zynga shares were worth 6 $. Take-Two offered to shareholders on 64% more - 9,9 $. Given Zynga's debt, Acquisition cost Take-Two $12.7 billion. The publisher will pay the owners of Zynga with its own shares and money. If companies get regulatory approval, the deal will be closed in April-June 2022. Zynga financial results Zynga is a developer of mobile games like FarmVille, CSR Racing и Empires & Puzzles. The main income of the company is the sale of in-game items and advertising.. In recent 10 quarters, starting from 2019, Zynga's quarterly revenue increases by at least 40%. Despite this growth, the company is still unprofitable. Even a pandemic, when people started playing more, did not help the developer reach a stable profit. The problem is high development and advertising costs.. So, in recent 12 months, these costs amounted to approximately 60% from proceeds, or nearly all gross profit. As a result, operating profit of Zynga was a little more than zero — 29 million. Net loss for the last 12 months - 90 million dollars. According to Zynga, in 2022, its revenue will grow double-digit, but due to marketing costs, the developer plans to increase operating margins only in the next few years. Планы Take-Two По словам Take-Two, Mobile games are the fastest growing segment in the industry, which in the next three years will grow by an average of 8%. The publisher expects, that after the takeover, its share of mobile gaming revenues will increase from 12% в 2022 финансовом году …
Take-Two shares fell by 13% on the news of the purchase of game developer Zynga for 12,7 billion dollars Read more