TTWO's share price continues to decrease as Q4 losses increased while sales slumped for TTWO. It also signed an employment contract with Rockstar Games, the company behind Grand Theft Auto video game series...
Q4 losses increased while sales slumped for TTWO. It also signed an employment contract with Rockstar Games, the company behind Grand Theft Auto video game series...
TTWO's 4th Quarter sales were lower than analyst expectations, and its losses widened from the year-ago period.
Take-Two Interactive Software, Inc. (TTWO) shares plunged yesterday (Monday) after Electronic Arts Inc. (ERTS) withdrew its bid for the maker of the popular Grand Theft Auto 4 video game. Take-Two shares shed $5.32, a decline of 24%, to close at $16.57. But Ben Feder, Take-Two’s chief executive, said in an interview yesterday the company is “very, very happy to stay independent,” The Associated Press reported.
Very positive reviews of GTA 4 push up stock expecations for TTWO, to prices above the EA offer.
Grand Theft Auto IV was released on 29 April 2008, after a six month delay. It was the first Grand Theft Auto game to be released simultaneously for both Sony and Microsoft's video game consoles.
Electronic Arts offered to purchase Take 2 for $2 Billion in cash, this equates to $26 per share, on Sunday 2/24/2008. Take 2 subsequently rejected the offer on the same day stating this offer vastly undervalues TTWO.
Take-Two reported a Q3 net loss of $58.5 million, compared to a loss of $91.4 million last year. The loss was lower than expected, primarily due to increase in the sales of games such as The Darkness” and the one based on ‘Fantastic Four’ movie. The company expects that its 2008 earnings outlook will be above market expectations as the company’s most awaited game ‘Grand Theft Auto IV’ has been released.
Take-Two delayed the release of the next iteration of Rockstar's monster Grand Theft Auto franchise from Q3 2007 to Q2 2008.