Take-Two Interactive is buying "Farmville" creator Zynga for $11.04 billion, the "Grand Theft Auto" producer announced on Monday, as it aims to capitalize on a spike in mobile gaming.

Take-Two, the company behind "Red Dead Redemption," offered $9.86 per share, a 64% premium to Zynga's previous closing price. Before the bell, Zynga's stock increased by approximately 50%, while Take-stock Two's dropped by roughly 9%.

As gaming firms aim to expand their mobile portfolios, this deal follows Electronic Arts' $2.4 billion acquisition of Glu Mobile last year.

Many users who were addicted to their consoles during the pandemic's peak have switched to mobile gaming because they prefer to play on the go.

Take-Two Chief Executive Officer Strauss Zelnick stated in a statement, "This strategic merger brings together our best-in-class console and PC franchises with a market-leading, diversified mobile publishing platform with a strong history of invention and creativity."Zynga & Racing Icon Ken Block Announce Alliance; Street Says Buy

According to a major Newswire's calculations, the deal's equity value is $11.04 billion. The total value of the purchase, including debt, is $12.7 billion.

Take-Two has obtained $2.7 billion in funding from J.P. Morgan and plans to fund the remainder using cash on hand and profits from fresh debt issuance.

Take-Two anticipates yearly cost savings of around $100 million in the first two years after completion, as well as more than $500 million in adjusted revenue over time.