Take-Two is ‘still looking’ for acquisition targets following record Zynga deal | VGC

After announcing the games industry’s biggest ever deal, Take-Two has said it’s still interested in further acquisitions.

Earlier today the company revealed its intention to acquire mobile games giant Zynga in a deal worth a record $12.7 billion.

It will see Take-Two’s blockbuster console and PC franchises like Grand Theft Auto, Borderlands, NBA 2K and BioShock brought under the same roof as Zynga’s hugely popular social gaming brands including FarmVille and Words With Friends.

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In an investor call following the deal’s announcement, Take-Two CEO Strauss Zelnick said Rockstar’s parent company remains on the lookout for further acquisition targets.

“In terms of your question regarding ongoing acquisitions, that’s still something that will be of interest to us,” he said.

“We will close this transaction with a fortress like balance sheet, with very little net debt. We expect to be in a net cash position within a few years, by fiscal 24 [the business year ending March 31, 2024].

“We expect to generate positive cash flow on an ongoing basis as soon as the transaction closes and we expect the transaction to be accretive, so we’ll be in a powerful position to continue to acquire,” Zelnick continued.

“And our approach to acquisition remains the same, which is we’re looking for great teams, great intellectual property, and accretive transactions. This transaction, for example, is expected to be accretive upon its closing.”

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

Following the deal’s completion, Zynga will oversee Take-Two’s mobile efforts, including the T2 Mobile Games business, which will operate under the Zynga brand as its own label within the company.

During Monday’s investor call, Zelnick also said Zynga’s expertise could help it drive its free-to-play and cross-platform ambitions, as well as bring Take-Two’s console and PC properties to mobile and add new game modes.

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