Activision mulled outbidding Take Two for Zynga before Microsoft deal
The Microsoft logo can be seen on this smartphone, which is placed on the Activision Blizzard Logo in this illustration from January 18, 2022.
Dado Ruvic | Reuters
Activision BlizzardTo work with a financial company on topping, I contacted them. Take-TwoAcquisition of $12.7 Billion by. ZyngaBefore you agree to sell MicrosoftAccording to someone familiar with the subject, this happened last weekend.
Activision reached out recently to a financial advisor to present to its board a proposal about taking on Take-Two. The person, who requested anonymity because it was a private presentation, said that the company had asked for a presentation. The person said that the presentation took place last week.
Activision considered Zynga a possible plan B for Microsoft, but it’s not clear if they were. According to someone familiar with the matter, Activision was called by Goldman Sachs as part of their go-shop process. A person who spoke on condition of anonymity said that bankers couldn’t have known Activision was about to sell to Microsoft due to the bank’s Chinese walls.
Take-Two stipulates that Zynga must have a “go-shop” period of 45 days. It allows other businesses to offer more than the $12.7billion offered. Zynga must offer a lower bid and pay Take-Two $400 millions. Take-Two already offered 64% more than Zynga’s closing prices the day prior to the announcement, making it expensive for companies.
Activision Blizzard spokespeople were unavailable for immediate comment.