Take Two is acquiring Zynga in deal worth $12.7 billion

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SegaHeart said:

I wonder how Taketwo can pay 12 billion when in 2021 Taketwo has 3 billion cash on hand, I wonder where the 9 billion comes from?

To make it simple, they'll borrow it.

Either Taketwo or Zynga (more likely) is going to take out a big chunk of money to pay off its current shareholders (the ones that don't want take 2 stock anyway). Then Take Two will take the rest of the stock, and own the company which now has a ton of debt. If the company stays profitable, then they make enough to pay the interest and pocket some for themselves, and then either pay off the principal, or sell Zynga to someone else.

https://www.investopedia.com/terms/l/leveragedbuyout.asp#:~:text=A%20leveraged%20buyout%20(LBO)%20is,assets%20of%20the%20acquiring%20company.