· less than 3 min read
One of the biggest acquisitions in video-game history is upon us. (And no, it’s not that you finally got your hands on a PS5.)
Take-Two Interactive, the company that publishes games like Grand Theft Auto and Red Dead Redemption, said this week it will buy video-game developer Zynga in a mega-deal valued at $11+ billion.
If it goes through, the acquisition will combine Take-Two games with Zynga’s mobile-first portfolio, which includes games like Words with Friends and FarmVille.
Screen shift: There’s lots of money to be made on mobile screens. Consumer spending on mobile gaming grew to an estimated $116 billion industry in 2021, according to data from the app analytics firm App Annie, up from $74 billion in 2018.
Take-Two is bracing for a shifting tide. More than half of its net bookings—meaning its net physical and digital sales—will make up mobile gaming in 2023, Take-Two projected in a company filing, compared to the estimated 12% of mobile gaming net bookings expected this year.
All about the ads: Companies can make a killing from in-game purchases, but there’s tons of money in mobile advertising. Total mobile advertising spend topped $295 billion in 2021, according to App Annie, even despite some consternation in the industry following a privacy change from Apple that made hyper-targeting harder. By this year, according to App Annie, total ad spend on mobile is estimated to surpass a whopping $350 billion.—KS
Ryan Barwick / 01.14.2022
Kelsey Sutton / 01.7.2022
Kelsey Sutton / 01.12.2022
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