Grand Theft Auto video game maker Take-Two Interactive would buy Zynga for $11.04 billion in a cash-and-stock deal that will add popular mobile titles such as FarmVille under its umbrella as demand surges for on-the-go gaming.
Take-Two expects about $100 million in annual cost savings within the first two years, and more than $500 million in net bookings over time when the deal closes in mid-2022.
The mobile gaming market is likely to reach a size of $116.4 billion by 2024, according to data firm Newzoo.
“This trend won’t stop here. Many of the console developers are finding out that creating mobile games is difficult,” said D.A. Davidson analyst Franco Granda.