Zynga: Disappointing Deal Value
- Zynga agrees to be bought by Take-Two Interactive at a disappointing valuation despite the deal premium.
- The new entity proposes a company rivaling EA trading at a major discount to the gaming giant.
- The new Take-Two will have appealing 14% growth rates plus $500 million in net bookings synergies in mobile.
- The stock will trade at a FY23 EV/S multiple of 3.5x, which is a major discount to past multiples.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »