Zynga Inc. ZNGA shares were trading significantly higher Monday after the company announced it will be acquired by Take-Two Interactive Software Inc. TTWO. Zynga stockholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing of the transaction.
Full Answer
Why is Zynga's stock down 18%?
Dec 08, 2021 · The stock price of Zynga (NASDAQ: ZNGA) has seen a decline of 6.5% over the last week, while it is down 22% year-to-date. ZNGA stock has seen a gradual decline since it reported sluggish Q2 results...
Is take-two stock a better buy after Zynga acquisition?
Jan 12, 2022 · This latest round of moves under Gibeau has only just begun to take shape. And now, with Zynga stock selling off hard in the last year (due to lapping its boom from early in the pandemic during ...
Is Zynga’s stock a buy at 4x 2020 revenues?
Jan 10, 2022 · Zynga Inc. ZNGA shares were trading significantly higher Monday after the company announced it will be acquired by Take-Two Interactive Software Inc. TTWO. Zynga stockholders will receive $3.50 in...
How has ZNGA stock performed over the last 6 months?
Aug 07, 2021 · What happened Shares of Zynga ( ZNGA 0.45% ) plummeted on Friday after the video game developer warned investors that its growth was slowing. As of 3:40 p.m. EDT, Zynga's stock price was down 18%....
What will happen to Zynga stock after merger?
Under the terms of the deal, Zynga stockholders will receive $3.50 in cash and $6.36 in stock when the transaction closes, for a total of $9.86 per Zynga share.Jan 10, 2022
What is the forecast for Zynga stock?
Stock Price Forecast The 15 analysts offering 12-month price forecasts for Zynga Inc have a median target of 10.00, with a high estimate of 11.00 and a low estimate of 8.20. The median estimate represents a +11.98% increase from the last price of 8.93.
What will happen to Zynga shareholders?
Zynga shareholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga common stock that they currently hold. The acquisition is still subject to shareholder approval at both companies but is expected to be completed by June 30, 2022.Jan 10, 2022
Should I hold Zynga stock?
The consensus among Wall Street analysts is that investors should "hold" Zynga stock. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ZNGA, but not buy additional shares or sell existing shares. View analyst ratings for Zynga or view top-rated stocks.
Does Zynga pay a dividend?
ZYNGA (NASDAQ: ZNGA) does not pay a dividend.
What is the forecast for Apple stock?
Stock Price Forecast The 37 analysts offering 12-month price forecasts for Apple Inc have a median target of 191.00, with a high estimate of 215.00 and a low estimate of 145.00. The median estimate represents a +14.07% increase from the last price of 167.44.
Who bought out Zynga?
Take-TwoAnd just a week ago, console gaming heavyweight Take-Two announced an agreement to acquire Zynga in a deal valued at $12.7 billion which Forbes senior contributor Paul Tassi says instantly made it “a mobile monster.”Jan 17, 2022
Who is buying Zynga?
Take-Two Interactive says it is buying mobile gaming company Zynga for $12.7 billion with a mix of cash and stock, marking the latest blockbuster acquisition in a string of major deals in the video game industry.Jan 10, 2022
Is Zynga going to be bought?
In a tie-up of two massive but very different makers of video games, Take-Two Interactive TTWO -0.7% agreed today to buy Zynga ZNGA -1.2% in a cash-and-stock takeover worth $12.7 billion. It's the biggest acquisition of all time in the video game space.Jan 11, 2022
Is Zynga overvalued?
Is Zynga Overvalued? Market consensus expects Zynga's revenue and EBITDA to grow by +35% and 20% YoY to $2,667 million and $674 million, respectively in FY 2021. But the strong growth is largely factored into Zynga's share price as evidenced by the company's rich valuations.Mar 3, 2021
Will Zynga stock become take two stock?
Zynga stockholders will receive $3.50 in cash and $6.36 1 in shares of Take-Two common stock for each share of Zynga common stock outstanding at the closing.Jan 7, 2022
How does Zynga makes money?
Zynga generates its revenues primarily from two sources ~ Online Games, and Advertising. Online Games refers to sales of all of Zynga's games, and accounts for over 70% of total revenues. Key franchises ~ Poker, FarmVille, CSR.Sep 13, 2019
People are playing games less often as the economy reopens
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What happened
Shares of Zynga ( NASDAQ:ZNGA) plummeted on Friday after the video game developer warned investors that its growth was slowing. As of 3:40 p.m. EDT, Zynga's stock price was down 18%.
So what
The owner of games such as Words With Friends and Tangle Master 3D saw its revenue rise 59% year over year to $720 million in the second quarter. The gains were fueled in part by a 110% surge in advertising revenue, to $133 million.
Now what
Investors have grown accustomed to strong bookings and revenue growth for gaming companies during the pandemic. But as vaccinations rise and people spend more time outside their homes, the gaming industry's growth is slowing.
Short-term headwinds
Zynga reported second-quarter bookings of $712 million, up 37% year over year. It also posted a surprise profit of $0.02 per share, but bookings came in below the consensus estimate of $716 million. The stock is down 10% since the Aug. 5 earnings release.
Long-term growth opportunities
Looking ahead, Zynga has several growth initiatives underway. Management expects upcoming game releases to drive "meaningful" organic growth in 2022. FarmVille 3 is now expected to release in the fourth quarter. Plus, Star Wars: Hunters will enter a soft launch by the end of the year.
The stock is a better value
Zynga is investing in the right areas: growing its game portfolio, extending its international reach, and building a more robust advertising platform to further monetize its 41 million daily active users.
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Zynga saw a big spike in revenue and bookings, but slightly missed estimates
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What happened
Mobile video game company Zynga ( NASDAQ:ZNGA) saw its stock price plunge 12.4% in August, according to S&P Global Market Intelligence. The maker of Words with Friends and FarmVille trailed the S&P 500, which was up 2.9% in August.
So what
Zynga is one of the premier providers of mobile video games, the kind you play on your phone or tablet. In addition to the above-mentioned games, it also offers Zynga Poker, Toon Blast, Toy Blast, Harry Potter: Puzzles & Spells, Merge Dragons! and Merge Magic! to name a few.
Now what
The miss on bookings is likely caused by there being slightly fewer users than expected due to economies opening back up over the summer and Apple 's recent mobile app privacy changes, explained CEO Frank Gibeau on the second-quarter earnings call.
