By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Gaming Discussion - Take Two is acquiring Zynga in deal worth $12.7 billion

Sweet maybe we will get a farmville mini game in the next GTA game!



Around the Network
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.



Zkuq said:

Since nowadays I apparently have to voice my opinion about every acquisition regardless of whether I have a strong opinion about it or not much of an opinion to be able to criticize acquisitions, I'll just add that this is the kind of an acquisition that I don't think hurts too much. It's not very promising in terms of what kinds of developments the future might hold for Take Two's games, but this also isn't a very exclusive move.

 No ones dragging you into the conversation and in this particular thread all I have heard so far is neutral  commentary mainly related to the price.

Last edited by mjk45 - on 10 January 2022

Research shows Video games  help make you smarter, so why am I an idiot

mjk45 said:
Zkuq said:

Since nowadays I apparently have to voice my opinion about every acquisition regardless of whether I have a strong opinion about it or not much of an opinion to be able to criticize acquisitions, I'll just add that this is the kind of an acquisition that I don't think hurts too much. It's not very promising in terms of what kinds of developments the future might hold for Take Two's games, but this also isn't a very exclusive move.

No ones dragging you into the conversation and in this particular thread all I heard so far is neutral  commentary mainly related to the price.

No, but when an interesting acquisition comes up and I want to participate, there will be people asking where I was with my opinions when other acquisitions happened. Next time I want to have a history so I don't get dismissed with 'where were you when X bought Y', which has happened multiple times in the past, the biggest of which I think was Microsoft buying Bethesda.



Zkuq said:
mjk45 said:

No ones dragging you into the conversation and in this particular thread all I heard so far is neutral  commentary mainly related to the price.

No, but when an interesting acquisition comes up and I want to participate, there will be people asking where I was with my opinions when other acquisitions happened. Next time I want to have a history so I don't get dismissed with 'where were you when X bought Y', which has happened multiple times in the past, the biggest of which I think was Microsoft buying Bethesda.

Tell them that acquisitions aren't generic and each one needs to be looked at on its merits.



Research shows Video games  help make you smarter, so why am I an idiot

Around the Network
mjk45 said:
Zkuq said:

No, but when an interesting acquisition comes up and I want to participate, there will be people asking where I was with my opinions when other acquisitions happened. Next time I want to have a history so I don't get dismissed with 'where were you when X bought Y', which has happened multiple times in the past, the biggest of which I think was Microsoft buying Bethesda.

Tell them that acquisitions aren't generic and each one needs to be looked at on its merits.

Maybe I should, but the frustration is real. I'll have to think about this more.



Consolidation of the gaming market still ongoing... And likely to do so for some time it seems.



--::{PC Gaming Master Race}::--