Today's video focuses on Take-Two Interactive Software (TTWO -0.03%) and its plans to acquire Zynga (ZNGA). I discuss the deal, how it can help Take-Two Interactive grow, and my overall thoughts and concerns. Here are some highlights from the video.
- The combined company will become a leader in the mobile gaming world. At the end of its fiscal year 2022, pre-merger, Take-Two mobile net bookings are expected to be roughly 12% of total bookings. For the fiscal year 2023, post-merger, mobile net bookings are expected to be over 50% of total bookings.
- Take-Two is currently a powerhouse in the console and pc market, with popular game franchises like Grand Theft Auto and NBA 2K. Take-Two will soon start to create mobile games for many of its iconic franchises, with the addition of Zynga's game developers, who have strong knowledge of mobile gaming.
- The transaction is expected to close during the first quarter of Take-Two's fiscal year 2023, ending Jun. 30, 2022. Take-Two has received committed financing of $2.7 billion to fund the cash component of the deal, with the combination of cash from its balance sheet and proceeds of new debt issuance.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Jan. 10, 2022. The video was published on Jan. 10, 2022.
