Take-Two Interactive buys Zynga in $12.7 billion deal

Take-Two Interactive, maker of Grand Theft Auto and Red Dead Redemption, is buying Zynga, maker of FarmVille and Words With Friends, in a cash-and-stock deal with an enterprise value of about $12.7 billion.

Zynga shareholders will receive $3.50 in cash and $6.36 in shares of Take-Two common stock for each share of Zynga outstanding stock at closing.

Take-Two said Monday it anticipates $100 million in annual cost savings. The company's other popular games include BioShock, Borderlands and NBA 2K. Zynga's titles also include CSR Racing, Harry Potter: Puzzles & Spells and Toon Blast.