TAKE-TWO INTERACTIVE completed its merger with Zynga 5/23/2022 for $3.50 cash and 0.0406 shares of TAKE-TWO INTERACTIVE stock for each Zynga share.

The SEC filing for this merger, an S-4/A filing of 4/5/2022 is available on the SEC EDGAR site at https://www.sec.gov/Archives/edgar/data/0000946581/000119312522096532/d420326ds4a.htm . This merger is a cash-plus-stock reorganization. All the information below is from the information available from the S-4/A filed with the SEC. Price information is from web sites offering historical prices.

NOTE: The price used for the surviving company affects the gain realized from this merger and the cost basis of the surviving company. Tax law is not specific about the price to use in such mergers. As a result, your records may show a different gain and cost basis from this merger than your broker. This does not mean your records are inaccurate.  If a form 8937 is available, the price in the instructions will match that used in that form. If form 8937 is not available, the lower of the opening or closing price will be used. This will defer some capital gain.

The ICLUBcentral tax printer handles any difference between your records and the broker in the normal operation of the tax printer.

This transaction can be entered in the myICLUB.com online accounting using the Merger with cash transaction available by going to Accounting > Securities > Merger with cash.

The details of the transaction in myICLUB.com are as follows:

  • Date: 5/23/2022
  • Merging Company: Zynga (ZNGA)
  • Number of Daughter companies: 1
  • Price Per Share of ZNGA: Use the last valuation price
  • Taxable Status: Transaction is taxable to a maximum of the cash received.
  • Cash per share received: 3.50.  The number entered here will automatically fill in the Cash received (not counting fractional shares): field. If the cash amount is not correct, adjust the Cash per share until it is.
  • Exchange ratio of new to old shares: 0.0406 to 1
  • Price per share of new shares: 115.01 (Opening  price on 5/23/2022)
  • Reorganization Fee: Enter any re-organization fee the broker charged, otherwise leave blank.
  • Symbol of new company: TTWO
  • Shares received: Filled in automatically.
  • Cash received: leave blank, unless the broker showed cash-in-lieu for fractional shares.
  • Account: Broker or change to whichever account the extra money was deposited to