Phil Spencer Confirms Microsoft Tried to Buy Zynga Before Take-Two Acquisition

admin June 24, 2023

0 1 minute read

While Take-Two Interactive has announced plans to acquire Zynga in 2022, Xbox chief Phil Spencer has revealed that Microsoft was seriously considering buying the mobile gaming giant before that.

During cross-examination in today’s Microsoft FTC trial, Spencer discussed the struggles of the mobile game business, saying Xbox “has no strategy to win organically in mobile games.” Spencer argued that mobile gamers don’t want the traditional Xbox console experience, and console gamers don’t want that exclusive experience on mobile.

Spencer revealed that Microsoft tried to buy Zynga to fix the problem, but the developer was instead bought by Take-Two for $12.7 billion. At the time, it was the largest acquisition of a game company in history. Spencer has admitted that Microsoft has spent “a considerable amount of time” on a potential acquisition of Zynga, but it turns out that Microsoft wanted bigger things to embark on its mobile business.

“…we needed something bigger than Zynga was given a very small starting space in the mobile games business.”

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“I have so much respect for the people at Zynga and what they have built. We thought we needed something big,” Spencer said.

In November 2021, Microsoft’s attention shifted to its acquisition of Activision Blizzard. Spencer noted that Activision is the largest publisher of mobile content outside of China, thanks to King’s existing franchises such as Candy Crush.

“I spent time with our CFO, Amy Hood. [Microsoft], Activision was the largest publisher of mobile content as it explored the mobile opportunities that existed in the market. And since this is a partner we know well given our long history of working together, we both felt at ease with the studio and the team. But most important was their portfolio and mobile engagement. ”

Microsoft is also reportedly Considered acquiring Zynga in 2010back when Don Matrick was still running the Xbox business.

For more, check out everything that happened in the Microsoft FTC trial, including Starfield apparently nearly skipping Xbox entirely before Microsoft acquired Bethesda.

Logan Plant is a freelance writer for IGN covering video game and entertainment news. He has over 7 years of experience in the games industry and has written byline articles for IGN, Nintendo Wire, Switch Player Magazine and Lifewire. Find him on Twitter @LoganJPlant.