Take-Two Interactive, the US publisher, developer, distributor of computer games that owns Rockstar Games, 2K, Private Division, Ghost Story Games, and Socialpoint, is buying Zynga for $12.7 billion.

A press release from Take-Two said it is a transformative combination of companies that makes Take-Two one of the largest and most diversified publishers of mobile games.

Strauss Zelnick, Chairman and CEO of Take-Two Interactive (Photo: Business Wire)

We are delighted to announce our transformational transaction with Zynga, which significantly diversifies our business and strengthens our leadership position in mobile, the fastest-growing segment of the interactive entertainment industry. This strategic combination combines our console and PC franchises with the market-leading mobile publishing platform.

Take-Two will acquire all of Zynga’s shares for a total of $9.86 per share – $3.50 in cash and $6.36 per Take-Two common share. The deal represents a 64% premium to Zynga’s share price.

Frank Gibeau, CEO of Zynga (Photo: Business Wire)

We are incredibly pleased to have found a partner in Take-Two who shares our commitment to investing in our players, strengthening our creative culture, and creating more value for shareholders. With this deal, we begin a new journey that allows us to create even better games, reach a wider audience and achieve significant growth as a leader in the next era of gaming.

The merger of the companies presents good opportunities to capitalize on the interactive entertainment industry. The deal will support Take-Two’s mobile offerings, including popular games: Dragon City, Monster Legends, Top Eleven, Two Dots, and WWE SuperCard.