Why Zynga Stock Is Skyrocketing Today
Zynga (NASDAQ: ZNGA) stock is soaring today following news that the company is set to be acquired by Take-Two Interactive (NASDAQ: TTWO) in a $12.7 billion cash-and-stock deal. The mobile-focused video game publisher's share price was up roughly 45% as of noon ET. Meanwhile, Take-Two stock was down roughly 14%, suggesting that investors are worried the company is overpaying in the deal.
Following completion of the pending buyout, Zynga shareholders are set to receive $3.50 in cash and $6.36 in Take-Two stock for each share of Zynga stock they own. The combined $9.86 per share buyout price represents a 64% premium from the company's closing share price on Jan. 7. However, the planned buyout price is also roughly 20% below the 52-week high of $12.32 per share that Zynga stock hit last February.
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Source Fool.com
