Video game maker Take-Two buys Zynga for $11.04 billion

• Shares of Zynga soared 45% on Monday, while Take-Two shares fell about 15%

• The deal is expected to close in the first half of 2022 but Zynga has a go-shop period of 45 days

Video game maker Take-Two Interactive said on Monday it would buy Zynga for $11.04 billion in a cash-and-stock deal as demand for gaming is soaring.

The deal is the largest of the sector spanning console, PC and mobile devices, creating a market cap of nearly $30 billion.

Take-Two, known for games such as "Grand Theft Auto" and “Red Dead Redemption", offered $3.50 in cash and $6.361 in shares for each Zynga share. The deal is worth $12.7 billion, including debt.

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Shares of Zynga soared 45% on Monday, while Take-Two shares fell about 15%.

The deal is expected to close in the first half of 2022 but Zynga has a go-shop period of 45 days which means it can negotiate with other buyers for a better deal in the period.

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Zynga has shed more than a third of its market value in the last year, largest loss in the major game companies.

Take-Two expects $100 million in annual cost savings in the first two years and more than $500 million in net bookings.

Picture Credits: Reuters