Take-Two to buy Farmville creator Zynga for $12.7-B

NEW YORK - Video game publisher Take-Two announced Monday it reached a deal to acquire "Farmville" creator Zynga for $12.7 billion, in a major mobile gaming push by the maker of "Grand Theft Auto."

The merger brings Take-Two, a leader in console and personal computing games, together with a company with strength in interactive games played on mobile devices, such as "Farmville," which first became a phenomenon in the 2010s on Facebook.

The deal comes as Take-Two plans more smart phone versions of its games, which also include Red Dead Redemption and NBA2K.

The transaction also is designed to promote Take-Two's growth outside of its core markets in the United States and Western Europe. Take-Two officials emphasized that Zynga has a presence in more than 175 countries.

Zynga's games are generally free to play and the company generates revenues through the sale of in-game virtual items and advertising.

"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," Take-Two Chief Executive Strauss Zelnick said in a statement.

Zelnick, in a conference call with analysts, highlighted Zynga's expertise in "free-to-play" games which could allow for greater growth in India, parts of Latin America and the Middle East.

"We basically have 80 percent of the world's geography that is greenfield opportunity for us," Zelnick said. "Large parts of that geography really is driven by free-to-play and that's where Zynga's expertise lies."

The transaction prices Zynga at $9.86 per share, a 64 percent premium on Friday's share price.

About one-third of the payment will be in cash and the rest in Take-Two shares.

Zelnick is set to lead the combined company, with Zynga's team led by Chief Executive Frank Gibeau and Bernard Kim, president of publishing, overseeing the combined company's mobile gaming efforts.

New York-based Take-Two had revenues of $3.4 billion at the end of its last fiscal year and just shy of 5,100 employees. San Francisco-based Zynga had revenues of $2.0 billion and about 3,000 employees.

The deal includes a "go shop" provision that allows Zynga and its representatives to solicit and receive alternative bids for 45 days. The transaction is expected to close in the spring of 2022, the companies said.

Zynga shares soared 44.6 percent on the Nasdaq to $8.68 early Monday, while shares of Take-Two fell by 14.6 percent to $140.65.

Agence France-Presse

Grand Theft Auto pulled out in Australia over ‘violence’

SYDNEY, Australia — Australian retail giants Target and Kmart said Thursday they will stop selling blockbuster video game “Grand Theft Auto V” over concerns that it encourages violence against women.

Target, a popular department store chain, acted after a petition authored by former sex workers, which has so far been signed by more than 40,000 people, called it a “sickening game”.

“Games like this are grooming yet another generation of boys to tolerate violence against women,” the petition said.

“It is fueling the epidemic of violence experienced by so many girls and women in Australia — and globally.”

Target’s general manager for corporate affairs Jim Cooper said the decision was made following extensive community and customer concern.

“We’ve been speaking to many customers over recent days about the game, and there is a significant level of concern about the game’s content,” he said.

“We’ve also had customer feedback in support of us selling the game, and we respect their perspective on the issue.

“However, we feel the decision to stop selling GTA5 is in line with the majority view of our customers,” he added.

Cooper said Target, which has some 300 stores in Australia but is not connected to the US retail giant of the same name, would continue to sell other R-rated games, suitable for over 18s.

“While these products often contain imagery that some customers find offensive, in the vast majority of cases, we believe they are appropriate products for us to sell to adult customers,” he said.

“However, in the case of GTA5, we have listened to the strong feedback from customers that this is not a product they want us to sell.”

Kmart, which like Target is owned by diversified conglomerate Wesfarmers, said it was also pulling the game from the shelves of its stores. The company has 190 outlets in Australia and New Zealand.

“Following a significant review of all content in Grand Theft Auto Games Kmart has taken the decision to remove this product immediately,” spokesperson said.

Grand Theft Auto has won legions of fans around the world, and as many critics, for game play in which winning depends on acts such as carjacking, gambling and killing.

Play in Grand Theft Auto games has included simulated sex with prostitutes and drunken driving.

The fifth installment in the series is set in a fictional city of Los Santos based on real-world Los Angeles and its nearby hills and beaches.

source: technology.inquirer.net