Why I'll Be Selling My Zynga Stock Ahead of the Merger With Take-Two Interactive
Shares of mobile game publisher Zynga (NASDAQ: ZNGA) are soaring on news of a buyout offer from fellow video game company Take-Two Interactive Software (NASDAQ: TTWO). Games formatted for a mobile device have emerged as the biggest revenue generator for the massive and still-growing video game market, which is homing in on $200 billion a year globally. As a result, other publishers have scooped up leading mobile game developers (like Electronic Arts' (NASDAQ: EA) takeover of Glu Mobile last summer), and now it's Take-Two's turn.
But as a Zynga shareholder, I'll be selling my shares rather than participate in Take-Two's transformation (Zynga owners will be offered a mix of cash and Take-Two stock in the buyout). Here's why.
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Source Fool.com
