Take-Two Interactive Software Inc agrees to a deal to acquire Zynga Inc, in a $12.7B deal, according to a report by the Wall Street Journal on Monday.

  • The agreed cash-and-stock transaction would value mobile game maker Zynga at nearly $12.7 billion. 
  • Zynga stockholders would get compensation of around $9.86 per Zynga each share they own, including $3.50 in cash and $6.36 of Take-Two stock.
  • That compensation amount is nearly 64% premium to Zynga’s stock price of $6.00 as of Friday’s close. Zynga shares jumped nearly 50% in Monday premarket trading.
  • Zynga games’ titles include “FarmVille” and “Words With Friends” that showcased how video games could integrate entertainment with a social-media ethos.

 The deal is set to be finalized between April and June. TTWO down -10.09%, ZNGA up +51.83%, Pre-market trading.