Take-Two Interactive has suffered a significant drop in shares after announcing that it had purchased Zynga.
After Take-Two Interactive announced that it had acquired mobile gaming giant Zynga for £9.3billion, the company’s stock took a major hit as investors questioned the value in such a pricey acquisition.
As reported by Market Watch (thanks, VGC), Take-Two is heading for its worst drop in stock since 2009 as shares fell by more than 14 per cent yesterday. Meanwhile, Zynga stock skyrocketed by 47 per cent on the day that its acquisition was announced.
Although investors feel that Take-Two has paid too much for Zynga, the publishing goliath – responsible for titles such as Bioshock, Grand Theft Auto and Borderlands – seems to have big plans for Zynga. In an investor call shortly after the acquisition, Take-Two CEO Strauss Zelnick said that Take-Two plans to bring more games to mobile by using Zynga’s talents.
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Zelnick also said that the Zynga purchase would allow for “the creation of new titles based on Take-Two’s core intellectual property”.
Unfortunately for investors who are left with questions over the Zynga acquisition, Take-Two isn’t done just yet. In the same investor call, Zelnick said that acquiring more studios is “something that will be of interest to us,” adding that Take-Two will be in “a powerful position to continue to acquire” as soon as the Zynga deal wraps up.
“Our approach to acquisition remains the same, which is we’re looking for great teams, great intellectual property, and accretive transactions,” said Zelnick.
In other news, Techland has said that Dying Light 2 will only take 20 hours to complete if players just follow the main quest. The developer looked to clarify recent comments that said it would take completionists around 500 hours to get through the zombie game.
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