Take-Two Interactive 's (NASDAQ: TTWO) move to acquire leading mobile game developer Zynga (NASDAQ: ZNGA) for $12.7 billion didn't receive a round of applause. The stock price fell sharply on the news, although it has bounced back a few percentage points.
Take-Two already has a bright future ahead, with over 60 releases in the pipeline. Management is guiding for record operating results over the next few years as it starts to tap that slate. Investors were probably wondering why the company needed to make such a large deal, especially in the hit-and-miss mobile game market.
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For further details see:
What to Expect From Take-Two's $12 Billion Zynga Deal