A bombshell deal Monday in the gaming world. The maker of “Grand Theft Auto,” Take-Two Interactive, said it’s buying mobile game maker Zynga in an $11 billion deal. That’s a 64% premium to Zynga’s last closing price.
Analysts say Take-Two needed to make a move. It’s an industry behemoth known for adventure games on consoles and PCs. But its weak spot was the fast-growing mobile gaming segment, and it needed to close that gap with rivals like Electronic Arts.
So it went after Zynga, which is best known for “FarmVille.” That’s the franchise that captivated Facebook users when it launched over a decade ago and catapulted Zynga to stardom.
Shares of Zynga, which fell by over a third last year, zoomed up nearly 50% at the market open Monday. Take-Two tumbled.