Full Answer
Is Take-Two Interactive (TTWO) stock a buy at $143?
The stock of Take-Two Interactive (NASDAQ: TTWO) has seen a fall of 14% over the last month, while it is down 20% over the last week. TTWO stock rose from levels of around $160 in early December 2021 to levels of $182 earlier this month, before falling to levels of $143 currently.
What does Take-Two Interactive's acquisition of Zynga mean for the market?
Take-Two Interactive ( TTWO -0.14% ) announced Monday that it plans to purchase mobile games publisher Zynga ( ZNGA -1.47% ), and the market is apparently bearish on the deal. Take-Two's share price was down by roughly 14.5% as of 11:55 a.m. ET. According to the company, it will pay $12.7 billion in cash and stock for Zynga.
Why did TTWO (TTWO) stock fall 8% despite upbeat earnings?
Despite an upbeat performance, TTWO stock plunged 8% due to its outlook for the next quarter and the full-year falling below the street estimates. The company’s guidance of $3. 2 billion revenue and $3. 87 in earnings at mid-point of the range, is well below the consensus estimates of $3. 4 billion in sales and $4. 80 in earnings per share.
Should you buy Tyler Technologies (TTWO) in 2020?
While TTWO stock may rise in the near term, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Tyler Technologies vs. Take-Two Interactive.
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How much is Social Point worth?
Take-Two Interactive, the games maker behind big titles like Grand Theft Auto, Civilization and BioShock that once rebuffed a $2 billion acquisition offer from EA, has made a definitive move into the world of mobile gaming: it has acquired Social Point, a publisher based out of Barcelona, for $250 million with ...
Who bought Social Point?
Take-Two InteractiveFounded in October 2008 by Horacio Martos and Andrés Bou, the company specialises in free-to-play mobile and social network games, distributed across Android, iOS, Fire OS, and Facebook. Socialpoint was acquired by Take-Two Interactive in February 2017.
How much did Take-Two pay for Zynga?
$12.7 billionTake-Two Interactive has officially acquired social and mobile gaming company Zynga. The $12.7 billion acquisition, announced in January, was completed Monday. The combined company will bring a new slate of popular games to Take-Two, including Zynga's Farmville, Words with Friends and Zynga Poker.
When did Take-Two acquire Social Point?
January 31, 2017Founded in 2008 and headquartered in Barcelona, Spain , Social Point is a highly-successful free-to-play mobile game developer that focuses on delivering high-quality, deeply-engaging entertainment experiences. On January 31, 2017 , Social Point was acquired by Take-Two Interactive Software, Inc. (NASDAQ:TTWO).
Will social empires come back?
It's a bad news but social empires is closed, and it is not available in any app store or server. I think social point has no interest to bring back this game. They are busy with developing their other games.
Who is the owner of monster legends?
SocialPointMonster Legends is a free-to-play game on mobile devices developed and published by Spain-based developer, SocialPoint.
How much money did FarmVille make?
FarmVille's in-game revenue hits $1 billion.
What happens to my Zynga shares?
Shares of Zynga will cease trading after the market close on May 20, 2022, and following the closing, Zynga will no longer be listed on the NASDAQ exchange.
Is Zynga a good stock to buy right now?
In fact, at the current market price of $10, ZNGA stock is trading at just 22x its 2021 EPS estimate of $0.45. We continue to believe that Zynga deserves a higher P/E multiple given the strong revenue and earnings growth delivered over the recent past, a trend expected to continue going forward, as well.
Who owns Take 2 Interactive?
Ryan Ashley BrantTake-Two Interactive was founded by Ryan Ashley Brant, the son of media executive and Interview co-owner Peter Brant.
How much money did Social Point make in 2016?
In 2016, Social Point generated $90.8 million in revenue, which has grown 29% per year since 2013. The mobile game developer is also profitable, generating $19.9 million in earnings before interest and taxes (EBITDA), which is usually a good proxy for cash flow.
Where is Social Point based?
Take-Two Interactive Software ( NASDAQ:TTWO) took a big step to further distance itself from its reliance on lumpy console revenue with the recent announcement to acquire Social Point, a mobile game developer headquartered in Spain. Social Point is the maker of two popular mobile games -- Dragon City and Monster Legends -- ...
How much did Activision pay for King?
However, King was a larger swallow for Activision's business than Social Point will be for Take-Two. Activision paid $5.9 billion for King, and it has contributed about $1 billion in cash flow to Activision's 2016 financial results. Electronic Arts has also entered social and mobile gaming in recent years with the acquisitions of Firemint, ...
How much money did the mobile gaming market generate in 2016?
The mobile gaming market generated over $40 billion in revenue in 2016, and this is attracting major game publishers to acquire the small, fast-growing, and profitable app developers that have demonstrated a track record of creating quality games.
What is social point?
Social Point is the maker of two popular mobile games -- Dragon City and Monster Legends -- that have been downloaded more than 180 million times on Apple 's iOS and Google 's Android mobile platforms.
Is Take Two a mobile game?
With this acquisition, Take-Two is gaining access to the lucrative opportunity of free-to-play mobile gaming and diversifying its revenue stream from the sales of console games. Through the first nine months of fiscal 2017, console revenue was 80% of Take-Two 's total revenue.
Is Take Two a good deal?
Leaving that reasoning aside, it seems Take-Two made an even exchange by issuing shares that have seen a big run-up in the last few years and are trading for a higher valuation than what Take- Two paid for the mobile developer. All in all, Take-Two made a good deal.
What has spurred interest in saving and investment apps around the world?
The pandemic has spurred interest in saving and investment apps around the world, especially ones geared toward newer investors. In Southeast Asia, startups in this space that have raised funding o...
Who owns PayMaya?
Voyager Innovations, the Manila-based owner of PayMaya, one of the Philippines’ most popular payment and financial services apps, announced today it has raised $167 million in new funding to launch...
Key Points
Take-Two is set to pay a significant premium to acquire Zynga, but the move could have big payoffs.
The Zynga deal should make a strong player even stronger
Based on Take-Two's stock performance on Monday, it seems clear that the market thinks the company is overpaying to acquire Zynga.
Terms of The Deal
- Under the terms of the deal, Take-Two is paying a total of $250 million -- $175 million in cash and the balance in Take-Two stock. Usually, management will issue stock to make an acquisition if the acquiring company's shares are seen as "overvalued," following the logic of receiving more value than you give. In this case, Take-Two management offered stock to give Social Point managers …
The Big Opportunity in Mobile Gaming
- With this acquisition, Take-Two is gaining access to the lucrative opportunity of free-to-play mobile gaming and diversifying its revenue stream from the sales of console games. Through the first nine months of fiscal 2017, console revenue was 80% of Take-Two's total revenue. Given the relatively small amount of revenue Social Point will contribute to Take-Two's existing business, t…
Acquisitions An Industry Trend
- Take-Two is following in the footsteps of rival Activision Blizzard's acquisition of King Digital Entertainment a year ago. However, King was a larger swallow for Activision's business than Social Point will be for Take-Two. Activision paid $5.9 billion for King, and it has contributed about $1 billion in cash flow to Activision's 2016 financial re...
What to Do with All That Cash
- The growth of high-margin, digital revenue from in-game transactions is drowning the major game publishers in cash. As of the most recent quarter, Take-Two had over $1.4 billion in cash and short-term securities on its balance sheet, and it's generating over $200 million in annual cash from operations, or cash flow. As traditional game makers seek to further diversify and generat…