Take-Two acquire Social Point
Take-Two Interactive, the multinational games company, are behind some of the world’s biggest and most popular games publishers. And, they are expanding the scope of their company with a $250 million acquisition of a mobile gaming company.
Consolidation is rife throughout the gaming industry, as a handful of companies seem to create, control, publish and distribute nearly all of the most popular titles and series.
This trend looks set to continue, as Take-Two Interactive, often referred to as Take2 or T2, have agreed a deal to acquire Social Point, a Spanish mobile development company in a deal worth $250 million.
Take-Two, which already has Rockstar Games and 2K games in its stable, will pay $175 million up front for Social Point and take the remainder of the fee in company stock.
Ingrid Lunden, writing in Tech Crunch, said: ‘This is a big move for Take-Two, which has up to now focused more on console and PC gaming, eschewing the mobile games market. Social Point has at times been referred to as the “Zynga of Europe”, although its growth and valuation (and general fortunes) have been far more rational and steady (steadily growing upwards, that is).’
‘This is a straight diversification play for Take-Two, and an acknowledgement (after many years of staying largely out of mobile) that there is an opportunity for it in the mobile games market, specifically in the area of free-to-play.’
Strauss Zelnick, chairman and chief executive of Take-Two, said in a statement: “With the acquisition of Social Point, Take-Two has further diversified its business, expanded its portfolio of owned intellectual property, and significantly enhanced its position in the fast-growing free-to-play mobile gaming space.”
There is now a great deal of intrigue as to how Take-Two will use Social Point to bring their already popular titles, such as Bioshock and Grand Theft Auto, to mobile gamers.
Dominion holds Take-Two in its Global Trends Ecommerce Fund.
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