Thursday, July 7

Take-Two Shares Hit 1-Year Low After Zynga Purchase | Levelup

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This morning, Take-Two Interactive announced that it will spend a million dollars to buy Zynga, a company that once ruled the world of casual gaming. It was news that shook the gaming world and also the markets.

In fact, the market was quick to react to the news and there was an almost immediate impact on the value of Take-Two Interactive and Zynga’s shares. However, to the surprise of many, the reaction of the markets was completely opposite for both companies.

Find out: Take-Two boss changes his mind and now believes in virtual reality

What the heck are we talking about? While Zynga shares rose in value on the news, Take-Two Interactive’s plunged. Thus, it shows us that the market interpreted this news in a clear way.

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Markets Reacted Contrastingly

According to figures from Yahoo! Finance, at the time of writing this note, the actions of Take-Two Interactive have lost 23.40 points. This represents a drop of 14.22% that brings the value of each share to $ 141.33 USD.

At the market close on Friday, January 7, each Take-Two share was worth $ 164.63 USD. That said, with the markets opening this week and the news of the Zynga acquisition, its value plummeted to its lowest value in more than a year.

To give you an idea, the last time Take-Two shares were worth so little was on June 1, 2020 when they were worth $ 139.57 USD.

In case you missed it: Take-Two has just bought Zynga and is already thinking about taking out the portfolio for more companies

This is a very different situation for Zynga. The value of the shares of this company decreased in recent months and with this news they had an upturn of 2.65 points that represents an increase of 44.25%. This to reach the value of $ 8.66 USD per share.

Buying Zynga was very expensive

What does all this mean? Let markets and investors see things this way: Zynga earns a lot by joining Take-Two Interactive, one of the largest distributors in the industry. On the other hand, Take-Two does not earn that much for getting the services of this company.

According to journalists and experts, it is likely that the markets have reacted this way as they believe that franchises such as GTA Y Red Dead Redemption They may be successful on mobile, but Take-Two has taken a long time to make the leap. Only time will tell if this impacts in any way or if the opinion of the markets will change once the projects for iOS and Android are announced and go on the market.

What do you think about this new? How do you interpret the reaction of the markets to the news? Tell us in the comments.

Follow this link to see more news related to Take-Two Interactive. On the other hand, here you will find all our Zynga coverage.



Reference-www.levelup.com

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