Chinese industrial giant Tencent is going to acquire another major asset. The network started talking that Take Two Interactive, Electronic Arts or Zynga can join the ranks of the company. The latter is called most often.
Merge Dragons!, published by Zynga
Information about a possible deal was shared by Seeking Alpha with a link to TMT Finance.
According to the portal, Tencent has started negotiating with banks in the hope of obtaining a credit line for several billion dollars. The Chinese are going to spend this money on a new takeover, the newspaper reported.
However, TMT Finance noted that Tencent has not yet decided who exactly to buy. But it will probably be a gaming company from the USA or South Korea. Among the possible candidates, the portal named American Take Two Interactive, Electronic Arts and Zynga.
One of the largest US banks, KeyBanc, agrees that Tencent is considering buying Zynga.
Bank analyst Tyler Parker said that he is not familiar enough with TMT Finance and cannot fully trust the rumors, but “buying Zynga makes sense.” In his opinion, this deal is beneficial to both sides. Tencent is able to help Zynga strengthen its position in Asia by providing access to the distribution network and experienced mobile developers. It will also increase the presence of the Chinese colossus itself in the international market.
Against the background of such rumors, Zynga quotes rose by 5% yesterday and were sold at a price of $10.75 per share. However, to date, the value of the securities has already rolled back to $ 10.35.