Why Take-Two Interactive Shares Are Sliding Today

Take-Two Interactive Software Inc TTWO is trading lower Monday morning after the company announced it will acquire all of the outstanding shares of Zynga Inc ZNGA in a cash and stock transaction valued at $9.86 per Zynga share, representing a total enterprise value of approximately $12.7 billion.

Zynga stockholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing of the transaction.

The transaction is expected to be completed during the first quarter of Take-Two’s fiscal 2023, which ends June 30, 2022.

"We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry," said Strauss Zelnick, chairman and CEO of Take-Two.

Zelnick continued, "This strategic combination brings together our best-in-class console and PC franchises, with a market-leading, diversified mobile publishing platform that has a rich history of innovation and creativity."

See Also: Why Tilray Shares Are Rising Today

Take-Two is one of the world's largest independent video game publishers on consoles, PCs, smartphones and tablets.

TTWO Price Action: Take-Two has traded as low as $144.58 and as high as $214.91 over a 52-week period.

The stock was down 10.3% at $147.59 at time of publication.

Photo: William Hook from Flickr.