#Happy farm ville serial
Both companies are serial acquirers of smaller studios and technologies. It's almost like you have to keep acquiring in this business. Over time, titles that you think would whither away and fade, they've got this staying power.
#Happy farm ville software
The last thing I'll say before asking for your perspective is that this is an annuity business to me, this software gaming business. For me, I foresee overtime being able to transition some of these great titles on Take-Two's side into the mobile formats. But this gives them that instant entry into that space.
#Happy farm ville Pc
I think it's a good deal for Take-Two Interactive because as its leader in the PC and console gaming space, they really haven't been able to crack that mobile market to the degree you might have expected them to. But they've also mentioned about half a billion dollars in revenue synergies, that is, being able to combine these two platforms. Management of Take-Two Interactive wants to know, "Hey, what can we get out of these two companies if we combine them and look forward?" They've mentioned a $100 million in cost synergies over the next couple of years. The current shareholder of Take-Two Interactive wants to know, "Did you pay a fair price?" Then we can capitalize and start working on some of these synergies." So they are looking ahead. What this means is that the management of Take-Two Interactive says, "Yes, we can afford to give enough here so that shareholders and the board feels good about it on Zynga side. If you compare their forward multiples, just take their enterprise value to their EBITDA or earnings before interest, taxes, depreciation, and amortization, Zynga trades at a discount of something like 50 percent to Take-Two Interactive give or take the month. I think that Wall Street is taken aback just by that premium of what, 60, 64% to the closing price of Zynga on the last trading day? So it looks expensive that the question when you see that kind of gain is, oh wow, why did you pay that much? But Wall Street has awarded Zynga with a lower multiple over time than Take-Two Interactive has received. Sharma: Chris, I don't think they're paying too much. Do you think that Take-Two Interactive is paying too much? Because when you look at shares of Take-Two falling a bit today, that seems to be the reaction on Wall Street. But for now, let's just assume that this deal is going to go through. Take-Two Interactive came knocking at their door, and technically Zynga's still has 45 days to shop for a higher price. Interesting to me that Zynga apparently didn't go shopping themselves around. Zynga, probably still best known for FarmVille, but it's a mobile company and that's a fast-growing segment within the gaming industry. Take-Two has a number of gaming brands under its umbrella, probably best known for things like Grand Theft Auto and BioShock. Take-Two Interactive ( NASDAQ:TTWO) is buying Zynga in a cash and stock deal worth $12.7 billion. But we're going to start with the deal of the day. Hill: We've also got a warning in the retail industry and yet another self-driving vehicle. Asit Sharma: Chris, thank you for having me.
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