What happens to my Zynga stock after merger?
When a merger occurs, the shares of the acquired company, in this case, Zynga, are typically exchanged for cash, stock, or a combination of both from the acquiring company, Take-Two Interactive. As a Zynga stockholder, you can expect to receive $3.50 in cash and 0.0406 shares of Take-Two common stock for each share of Zynga common stock you own, after which your Zynga stock will stop trading and be delisted from Nasdaq.
Understanding the Merger Process
To delve deeper into the implications of the merger on your Zynga stock, it’s essential to understand the merger process and its effects on stockholders.
Frequently Asked Questions
Q1: What will happen to my Zynga stock?
Your Zynga stock will stop trading after the market close on the designated date and will be delisted from Nasdaq, following the completion of the merger.
Q2: How is the merger tax treated?
No taxes will be withheld from the cash and stock you receive in exchange for your Zynga shares. However, you will be taxed on any capital gain recognized, up to $350 of cash received and up to $156 received for a Take-Two fractional share.
Q3: What is the ticker symbol for Zynga?
The ticker symbol for Zynga Inc. is ZNGA, listed on Nasdaq.
Q4: Is Zynga still publicly traded?
No, Zynga is no longer publicly traded after being acquired by Take-Two Interactive in a $12.7 billion deal completed in May 2022.
Q5: How do I get the ticker symbol?
You can find a company’s ticker symbol by searching online financial databases, checking the company’s website, visiting the stock exchange’s website, or asking a financial advisor or broker.
Q6: Should I take cash or stock in a merger?
The choice between cash and stock in a merger depends on your financial situation and preferences. Cash provides immediate value, while stock offers potential for future growth.
Q7: Does a merger trigger capital gains?
Yes, a merger can trigger capital gains if the acquisition price is higher than your adjusted cost base.
Q8: What happens to stock in a merger of equals?
In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company.
Q9: What is the richest stock right now?
The richest stock currently is Berkshire Hathaway, with a market capitalization of over $640 billion and a share price of over $400,000 each.
Q10: Do I lose my stock after a merger?
After a merger, your shares in the acquired company will typically be exchanged for cash, stock, or a combination of both in the acquiring company.
Q11: What happens when a stock is delisted?
If a company is delisted, you can still sell your shares on the over-the-counter market, but not on the major stock exchanges.
Q12: What happens when a stock company is bought out?
When a company is bought out, shareholders usually receive cash or stock in the acquiring company in exchange for their shares.
Q13: Do stocks usually go up after a merger?
The target company’s stock price typically rises due to the merger, as the acquiring company pays a premium on the target shares.
Q14: When should I cash out my stocks?
You should consider cashing out your stocks when you’ve found a better investment, made a mistake in your investment decision, the company’s business outlook has changed, for tax reasons, to rebalance your portfolio, or when the valuation no longer reflects the business reality.
Q15: Who gets the money in a merger?
In a merger, the shareholders of the acquired company receive payment in the form of cash, stock, or a combination of both from the acquiring company.