According to NewYorkTimes.com…
Grand Theft Auto IV, the latest iteration of the hit video game franchise, racked up first-week sales of $500 million, Take-Two Interactive, the game’s publisher, plans to announce on Wednesday. The report exceeded the sales expectations of analysts.
The significance of the sales extends beyond buoying Take-Two, a company that has had its share of legal, financial and management struggles in the last few years. The company is the subject of a $2 billion hostile takeover effort by Electronic Arts, which is offering Take Two shareholders $25.74 a share for control of the company. If Take-Two can exceed sales expectations on Grand Theft Auto IV, it has the potential to drive up the share price and force Electronic Arts to raise its offer.
EA has been planning on taking over Take-Two Interactions (NBA 2K8, GTA IV) for quite some time now. they have already offered $2 Billion dollars, but Take-Two decided to wait until the release of GTA IV before making any comments. Shares of Take-Two have slowly increased following the release of GTA IV, but EA is still persistent in buying out the company. Take Two’s management team would like to inform investors
“that the success of Grand Theft Auto IV is awakening shareholders to the long-term value of the company’s stock and that if investors can be patient it can command a higher price in the long term.”
It’s really no surprise that the latest installment of the Grand Theft Auto franchise made so much money. I remember my roommate and I went to Gamestop at Midnight to pick up a copy and there was a line of *no joke* 50+ people. I even saw my big bro, Jason Mao Mao waiting in that line to get some of that sweet, sweet action.
And I’m not gonna lie, Grand Theft Auto IV is worth every penny. The game has gotten flawless reviews throughout the gaming industry with a 10/10 on gamespot.com. Only 5 games in the history of video game reviews has gotten a perfect score. I’ve personally played it and I’ve spent countless hours just messing around the city when I should be studying for Management 5.
I think it’s safe to say that with the release of this game and upcoming games like NBA 2K9, Take Two Interactions could be a wise investment in the long run. The shares are also considerably affordable (26.26, if you buy now) and this company DOES have the potential to grow. I mean it made $500 million in a week right?
I think that this merger can be very dangerous for gamers, particularly fans of sports games. If Take Two and EA merge, then EA will have a monopoly on the major sports titles, and as we all know (econ majors!), monopolies have no incentive to be creative since they have no competition. I predict years of un-innovative sports titles to come!
I apologize for my lack of knowledge around stock exchange, except my minor experience with the our stock protocol. I do agree with pan pan that the stock is a great investment, since GTA, the company’s ‘flagship’, will be a continuous cash cow for the company. However, Take Two’s other major sport titles, such as 2K8 and Bioshock, have yet been able to create the same impact on the gaming culture. I think this stock may be more of a short term than a long term investment.
A+ for Boyz in the Hood reference
I agree that TTWO is a good investment (i’ve been a shareholder since ~$13 dollar share price hehe) and would be rooting for Take-Two on a shareholder standpoint. Their combined ability with EA will probably make them one of the biggest powerhouses of game production in the industry. HOWEVER, I do agree with IrvineAKPSI that this is an extremely dangerous move for gamers, especially in the quality of games. As I know in EA history, they have been screwing up franchises when they buy out companies. I am honestly scared what EA is going to do to Take-Two. Take Westwood Games for example, which EA bought out. Remember the good old days of Command & Conquer: Red Alert? Now we have garbage like CC:3 and CC: Generals.
G’luck fans of Take Two games!
The games new gameplay features are so much better than the vice city especially with the zoom and cover features. I think this versions main success is that it has multiplayer…we’ve all been waiting for it since the beginning and its finally here.
So, I’m guessing a video game LAN party as a social event spearheaded by Mao Mao and Pan Pan?
I think its interesting how although hostile takeovers are rare, they are becoming more frequent in the technology arena. Yes, the Microsoft-Yahoo and EA-TakeTwo takeovers didn’t happen, but its just something I was thinking about.
Its awesome how EA didn’t buyout Take-Two because most of EA’s games are pretty whatever. With the Blizzard-Activision merger, EA has to do something to catch up. The Blizzard-Activision completely blows out EA in terms of sheer size and quality of games with World of Warcraft and Starcraft II in the making along with the Guitar Hero series from Activision. All Triple-A games (lingo for all you gamers)…