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Take-Two is selling $2.7 billion worth of senior notes to raise cash for Zynga deal

A portion of the net proceeds will be used to finance the cash portion of the acquisition.

Chris Kerr, News Editor

April 8, 2022

1 Min Read

Take-Two Interactive is selling $2.7 billion of its senior notes to help finance its pending acquisition of mobile publisher, Zynga.

The publisher, which owns major companies including Grand Theft Auto developer Rockstar Games, said the underwritten public offering will consist of $1.0 billion of its 3.300 percent senior notes due 2024, $600 million of its 3.550 percent senior notes due 2025, $600 million of its 3.700 percent senior notes due 2027 and $500 million of its 4.000 percent senior notes due 2032.

A portion of the net proceeds from the offering, together with cash on hand, will be used to fund the cash portion of the Zynga deal. Any remaining proceeds will be used for "general corporate purposes."

Take-Two agreed to buy Zynga at a valuation of $12.7 billion in January 2022 with a view to becoming a leader in the mobile space.

The deal will see Take-Two purchase all outstanding Zynga shares for a total value of $9.86 per share, comprising $3.50 in cash and $6.36 in shares of Take-Two common stock.

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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