Why Take-Two Interactive Stock Is Sinking Today
Take-Two Interactive (NASDAQ: TTWO) announced Monday that it plans to purchase mobile games publisher Zynga (NASDAQ: ZNGA), and the market is apparently bearish on the deal. Take-Two's share price was down by roughly 14.5% as of 11:55 a.m. ET.
According to the company, it will pay $12.7 billion in cash and stock for Zynga. That works out to an acquisition price of $9.86 per share, 64% higher than Zynga's price at the end of last week's trading. Investors appear to think that's too much of a premium.
Image source: Rockstar Games.
Source Fool.com
