We are investigating whether the directors of Zynga, Inc. (Nasdaq: ZNGA) (“Zynga”) acted in the best interests of ZNGA shareholders in approving the proposed acquisition of Zynga by Take-Two Interactive Software, Inc. (Nasdaq: TTWO) (“Take-Two”). If you remain a ZNGA shareholder and have questions about your legal rights, please contact our firm using the form below to discuss your options at no charge.
Why is there an investigation?
On January 10, 2022, before the markets opened, Take-Two announced that it plans to acquire all of the outstanding shares of Zynga for $9.86 per share, comprised of $3.50 in cash and $6.36 in shares of Take-Two common stock. The deal has already been approved by the board of directors of both companies.
Our investigation concerns whether Zynga’s board acted in the best interests of ZNGA shareholders in approving the acquisition by Take-Two, including whether the acquisition price, and mix of cash and common stock adequately compensates ZNGA shareholders, and whether all information regarding approval of the transaction has been fully disclosed.
In particular, based on twelve Wall Street analysts offering 12-month price targets for Zynga in the last 3 months, the average price target is $10.63, with a high forecast of $13.00. which are both below the proposed acquisition price of $9.86. Moreover, MKM Partners, a premier research firm, recently named Zynga as top pick for 2022 because “Zynga is well set up for double-digit bookings growth in 2022 paced by new game releases and contributions from the recent acquisitions. In addition, we see an attractive FCF story building over the next 24-months as the company is approaching the last of its M&A related earnout payments in 1Q22.”