Take-Two wrote off $3.55B of Zynga goodwill — a third of the $12.7B it paid

Take-Two Interactive, the maker of Grand Theft Auto and NBA 2K, closed its $12.7 billion acquisition of mobile studio Zynga in May 2022 — at the time the largest deal in gaming history. On 15 May 2025 it reported the goodwill it had recorded on that purchase was no longer worth what its balance sheet said. The fourth quarter of fiscal 2025 carried a $3,550.0 million goodwill impairment on the Zynga reporting unit and a further $176.3 million charge on acquired intangibles.

The two charges turned the quarter into a net loss of $3,726.2 million, or $21.08 per diluted share, against a full-year net loss of $4,478.9 million. The write-down was the decisive step: before the impairment the company's $12.7 billion bet had already been absorbing years of mobile-market headwinds, as post-COVID ad revenue fell and competitors consolidated around fewer, bigger titles.

The accounting acknowledged what the market had long priced in: the acquisition price carried a premium that the mobile business had not yet earned back. By writing the goodwill down in a single quarter, Take-Two admitted the gap between what it paid for Zynga in 2022 and what that business was now worth.