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?
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