Zynga (ZNGA -0.87%) stock is soaring today following news that the company is set to be acquired by Take-Two Interactive (TTWO -3.58%) in a $12.7 billion cash-and-stock deal. The mobile-focused video game publisher's share price was up roughly 45% as of noon ET.
Why is Zynga dropping today?
Zynga's stock dropped soon after the report also identified a softening mobile market, user privacy concerns and a loss of players as COVID-19 restrictions ease up. Still, according to CEO Frank Gibeau, the course that brought Zynga back from its death watch is one worth keeping.Aug 11, 2021
Will Zynga stock go up?
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.
Is Zynga a good stock to hold?
Analysts generally believe Zynga is underweight and its stock price target is estimated at a $12.00 value. Its price-to-sales ratio is over 33% lower than it was a year ago, but it's operating cash flow of $161 million last quarter is an 11 percent year-over-year increase.
Will Zynga stock become take-two stock?
Zynga is on track to be acquired by Take-Two Interactive Software. Take-Two Interactive Software 's deal for mobile games firm Zynga was announced nearly two months ago.Mar 4, 2022
Is Zynga stock undervalued?
Barring the pressure on advertising, we expect Zynga to navigate well based on these trends over the latest quarter. Furthermore, our forecast indicates that Zynga's valuation is $14 per share, which is 40% above the current market price of around $10, implying that ZNGA stock is undervalued at its current levels.Dec 8, 2021
Is Zynga a good stock to buy 2020?
The stock is a better value The stock's price-to-sales ratio has dropped from 6 in 2020 to 3.9 at current price levels. That's a huge discount to top gaming stocks that trade between 5.7 to 7.3 times sales. At this level, Zynga offers a combination of value and growth, which makes it a great buy, in my opinion.Aug 26, 2021
What company buys Zynga?
Take-Two InteractiveTake-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
What happened to Zynga?
According to TechCrunch, Zynga is shutting down, stopping accepting new players, or pulling from the app stores 11 of its games. According to the company, keeping some of these games up was too much strain on the company and was costing it money that it couldn't afford.
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
How does Zynga make money?
But how does Zynga make money, exactly? Two ways: From the sale of so-called virtual goods, which are used as currency within Zynga's online games and are items that help the player in the game, and. From advertising, both in and around its games.Sep 28, 2011
What is Zynga famous for?
The company primarily focuses on mobile and social networking platforms. Zynga states its mission as "connecting the world through games". Zynga launched its best-known game, FarmVille, on Facebook in June 2009, reaching ten million daily active users (DAU) within six weeks.
What happened
Zynga (NASDAQ: ZNGA) stock is soaring today following news that the company is set to be acquired by Take-Two Interactive (NASDAQ: TTWO) in a $12.7 billion cash-and-stock deal. The mobile-focused video game publisher's share price was up roughly 45% as of noon ET.
So what
After soaring for much of 2020 and the beginning of 2021, Zynga's share price had retreated following a diminished growth outlook for its advertising-focused, ultra-casual games and a broader pullback for video game stocks.
Now what
The Pre-Markets Rundown: February 7, 2022 CNBC brings you fast, accurate, and actionable business news and market updates. CNBC
What happened
Zynga (NASDAQ: ZNGA) stock is soaring today following news that the company is set to be acquired by Take-Two Interactive (NASDAQ: TTWO) in a $12.7 billion cash-and-stock deal. The mobile-focused video game publisher's share price was up roughly 45% as of noon ET.
So what
After soaring for much of 2020 and the beginning of 2021, Zynga's share price had retreated following a diminished growth outlook for its advertising-focused, ultra-casual games and a broader pullback for video game stocks.
Now what
Zynga stock currently trades at roughly $8.69 per share, which suggests roughly 13.5% additional upside based on the stated buyout price. The acquisition is on track to be completed by June 30, but it's still subject to gaining approval from Take-Two and Zynga shareholders and meeting necessary regulatory conditions.
Take-Two may need Zynga more than Zynga needs Take-Two
Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog.
Take-Two is breaking away from the episodic revenue model
Zynga is a leader in mobile games, responsible for classics like Words With Friends, Zynga Poker, and FarmVille. After losing its way after its IPO in 2011, the company has been back in growth mode since hiring CEO Frank Gibeau (a former EA executive) in 2016.
A higher premium for slower growth
Getting its hands on Zynga's fast-and-steady revenue expansion will be a big deal for Take-Two given Zynga's size, and combining forces will no doubt boost profitability as well. But I was invested in Zynga for its growth at a reasonable value.