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Motley Fool Hidden Gems Investing

Grand Theft Auto Comes to Farmville, The Hidden Costs of Trading

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 10 January 2022

⏱️ 30 minutes

🧾️ Download transcript

Summary

Take-Two Interactive is buying Zynga in a cash-and-stock deal worth $12.7 billion. Shares of Lululemon fall as the retailer lowers expectations for its next quarterly report. Asit Sharma analyzes those stories, the latest innovation from Deere & Co., and why he's focusing on both capital-light and capital heavy businesses this upcoming earnings season. Later in the show Ricky Mulvey talks with Maria Gallagher about how trading costs can still affect investors in a world where the cost of executing a trade is $0. Stocks: TTWO, ZNGA, LULU, NKE, DE, UNF, HD, HOOD, AMTD, SCHW Host: Chris Hill Guests: Asit Sharma, Maria Gallagher Producer: Ricky Mulvey Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Today on Motley Full Money, a closer look at trading costs.

0:09.1

And what do you get when you cross Farmville with Grand Thaft Auto?

0:12.9

That's coming up right now.

0:15.4

I'm Chris Hill, joined by Motley Full Senior Analyst, Asset Sharma.

0:25.6

Thanks for being here.

0:26.6

Chris, thank you for having me.

0:28.4

We've also got a warning in the retail industry and yet another self-driving vehicle.

0:33.3

But we're going to start with the deal of the day.

0:36.0

Take two interactive is buying Zinga.

0:38.7

In a cash and stock deal worth $12.7 billion, Take two has a number of gaming brands under

0:46.9

its umbrella.

0:48.6

Probably best known for things like Grand Thaft Auto and BioShock.

0:52.8

Zinga probably still best known for Farmville.

0:56.4

But it's a mobile company and that's a fast growing segment within the gaming industry.

1:04.8

Interesting to me that Zinga apparently didn't go shopping themselves around.

1:10.3

Take two interactive came knocking at their door and technically Zinga still has 45 days

1:16.2

to shop for a higher price.

1:18.9

But for now, let's just assume that this deal is going to go through.

1:24.0

Do you think that Take two interactive is paying too much because when you look at shares

1:28.2

of Take two falling a bit today, that seems to be the reaction on Wall Street.

1:33.5

They're paying too much for Zinga.

1:35.5

Chris, I don't think they're paying too much.

...

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