Breaking: Take-Two Considering Sale Of Company

http://www.gamasutra.com/php-bin/news_index.php?story=13186

The main example of an alternative course of action is "a possible sale of the Company", though the official notice also notes: "There is no assurance that any specific alternative proposal will be forthcoming."

Take-Two’s recently restated financial results for fiscal 2006 saw revenue fall and the company record a net loss of $184.9 million. In addition, Wedbush Morgan's Michael Pachter recently issued a statement to his firm's clients, calling Take Two's shares “overvaluedâ€￾ and the company's path ahead “troubling.â€￾

I think EA could be a good alternative.
 
EA is a good alternative? To what? Take 2 is being a good alternative to EA. If EA bought out Take 2, they'd just be bigger and more powerful than ever. That's not a good thing.

Surely the GTA team and license are quite valuable. Will Take 2 allow properties to be split? It doesn't sound that way, so any take over by an established publisher would involve a lot of waste.

I really have to wonder if Sony or MS are going for all or part of Take 2's assets. It seems like it would be a fairly large coup to get all Take 2's games exclusive to one platform, even if the money spent wasn't paid off for years (Rare comes to mind).

There aren't too many publishers that have the resources to pull this off.
 
I really have to wonder if Sony or MS are going for all or part of Take 2's assets. It seems like it would be a fairly large coup to get all Take 2's games exclusive to one platform, even if the money spent wasn't paid off for years (Rare comes to mind).
One company that says it's not in the running is Microsoft. Because today's independent publishers are platform agnostic - that is to say, they build games for all major systems - taking over one would result in a massive revenue loss for Microsoft, as all development would be redirected toward the Xbox 360.

"We could never launch an acquisition bid at a third party publisher," said Shane Kim, corporate vice president of Microsoft Game Studios.
http://money.cnn.com/2007/03/19/commentary/column_gaming/index.htm
 
EA is a good alternative? To what? Take 2 is being a good alternative to EA. If EA bought out Take 2, they'd just be bigger and more powerful than ever. That's not a good thing.

Surely the GTA team and license are quite valuable. Will Take 2 allow properties to be split? It doesn't sound that way, so any take over by an established publisher would involve a lot of waste.

I really have to wonder if Sony or MS are going for all or part of Take 2's assets. It seems like it would be a fairly large coup to get all Take 2's games exclusive to one platform, even if the money spent wasn't paid off for years (Rare comes to mind).

There aren't too many publishers that have the resources to pull this off.
Buying the GTA IP is like buying YouTube: a lot of attention and large user base, but with constant legal issues always hanging overhead. So I don't know that I would want GTA for profit reasons, but I could see trying to get it simply to make sure the other guy doesn't get it...
 
Buying the GTA IP is like buying YouTube: a lot of attention and large user base, but with constant legal issues always hanging overhead.

Unlike YouTube, however, GTA has earned tons of money for its creators, while YouTube is still at the "attract eyeballs, we'll figure out what to do with them later" phase.
 
What would Take Two net the buyer, other than GTA? Unless T2 could be got for a good price, GTA on its own would be quite an expensive investment.
 
Well, for one, that quote from Kim is probably not from a response to this particular situation.

Two, I don't think that the revenue loss would come from redirecting development nearly as much as the initial price tag. MS would be buying a large developer/publisher and then throwing away much of the publisher part. There's no question it would be quite wasteful, but that's not the ultimate question to ask. You should instead wonder whether it'd be worth it, waste and all. Is the risk of Sony getting the GTA IP too great? What about the other games 2K is publishing? Sports? Bioshock?

I'm not saying I find either Sony or MS to be likely buyers because I don't. They just represent the extremes of the possible outcomes of this situation.
 
What would Take Two net the buyer, other than GTA? Unless T2 could be got for a good price, GTA on its own would be quite an expensive investment.

This are most games that Take 2 published or published by a wholly owned subsidary that they purchased in the past. Whether or not they still retain some rights to these games, I have no idea but there is alot of ips here that are of quality.

Sid Meier's Gettysburg! (1997)
Sid Meier's Antietam! (1998)
Sid Meier's Alpha Centauri (1999)
Sid Meier's Alien Crossfire (1999)
Sid Meier's Civilization III (2001)
Sid Meier's Civilization III: Play the World (2002)
Sid Meier's Civilization III: Conquests (2003)
Sid Meier's SimGolf (2002)
Sid Meier's Pirates! (2004)
Sid Meier's Civilization IV (2005)
Sid Meier's Civilization IV: Warlords (2006)
Sid Meier's Railroads! (2006)
Imperialism, 1997.
Imperialism II: Age of Exploration, 1999.
Trade Empires, 2001.
Tropico 2: Pirate Cove, 2003.
System Shock 2, with assistance from Looking Glass.
Deep Cover, with assistance from Looking Glass (unreleased)
The Lost (cancelled after being co-developed with FXLabs Studios)
Freedom Force
Tribes: Vengeance
Freedom Force vs. the Third Reich
SWAT 4
SWAT 4: The Stetchkov Syndicate
Bioshock (in development, slated for release in August 2007)
Army Men: Major Malfunction
Army Men: Sarge's War
Carve
Charlie and the Chocolate Factory
Classified: The Sentinel Crisis
Codename: Kids Next Door - Operation: V.I.D.E.O.G.A.M.E.
Conflict: Vietnam
Corvette
Dora The Explorer - Barnyard Buddies
Dora The Explorer - Super Spies
Dora The Explorer: Journey To The Purple Planet
Dora The Explorer: Super Star Adventures
Ford Racing 2
Ford vs. Chevy
Global Star Sudoku Fever
Hidden & Dangerous 2: Sabre Squdron
Hidden & Dangerous Deluxe
Hummer: Badlands
Jetfighter 2015
John Deere American Farmer
Kids Next Door: Operation S.O.D.A.
Kohan II: Kings Of War
Mall Tycoon 3
Omar Sharif Bridge II
Outlaw Golf 2
Outlaw Tennis
Scaler
Serious Sam: Next Encounter
SPLAT Magazine Renegade Paintball
UFC: Sudden Impact
Age of Wonders series
Fly! series
Heavy Metal: F.A.K.K.²
Hidden & Dangerous
Hidden & Dangerous 2
Jazz Jackrabbit
Mafia: The City of Lost Heaven
Max Payne
Nocturne
Oni
Railroad Tycoon II and III
Rune
Serious Sam
Space Colony
Stronghold
Stronghold: Crusader
The Blair Witch Project trilogy
The Guy Game
Tropico
Tropico 2: Pirate Cove
Vietcong
Red Dead Revolver 2 -working title. * (Currently in development for PS3)
Manhunt 2* (In development. For PS2, PSP and Wii in 2007.)
L.A. Noire.* (In development for PS3.)
Grand Theft Auto IV.* (In development. PS3 and Xbox 360 for release in October 2007)
Grand Theft Auto: Vice City Stories. 2006 (Available on PSP and PS2)
Bully. 2006 (Available on PS2)
Rockstar Games Presents Table Tennis. 2006 (Available on Xbox 360)
Grand Theft Auto: Liberty City Stories. 2005 (Available on PSP and PS2)
The Warriors. 2005 (Available on PS2 , Xbox and PSP)
Midnight Club 3: DUB Edition. 2005 (Available on PS2, Xbox and PSP)
Grand Theft Auto: San Andreas. 2004 (Available on PS2, Xbox and Windows)
Grand Theft Auto Advance. 2004 (Available on GBA)
Red Dead Revolver. 2004 (Available on PS2 and Xbox)
Manhunt. 2003 (Available on PS2, Xbox and Windows)
Max Payne 2: The Fall of Max Payne. 2003 (Available on PS2, Xbox and Windows)
Max Payne. 2001 (Available on PS2, Xbox, GBA, Windows, and Mac)
Midnight Club II. 2003 (Available on PS2, Xbox and Windows)
Grand Theft Auto: Vice City. 2002 (Available on PS2, Xbox and Windows)
State of Emergency. 2002 (Available on PS2, Xbox, and Windows)
 
I have doubts how much longer the GTA formula can sustain anyway...so you'd be buying Rockstar for one dying trick.
 
I think Microsoft has one good reason why on shying away from buying another game publisher or developer. *Cough* Rare *Cough* Honestly what has Rare accomplished for Microsoft?

Sony should also stay away…let UBI Soft have them.
 
I think Microsoft has one good reason why on shying away from buying another game publisher or developer. *Cough* Rare *Cough* Honestly what has Rare accomplished for Microsoft?

Sony should also stay away…let UBI Soft have them.

Rare is a dev. Take 2 is a publisher. You would buy one for its talent and the other for its ip.
 
Honestly what has Rare accomplished for Microsoft?
I know it's en vogue to ridicule Rare and MS's purchase of Rare, but the ridicule is not entirely warranted. Rare has made some good games for MS platforms. Were all of them good? No. Were they worth $500 million? No. But the platform is stronger as a result of Rare and they're continuing to make mostly good games. They're certainly not the megaton that they were alledged to be, but so what?
 
Buying Take Two would be a bad investment for either MS or Sony. You'd spend a bunch of money on an already struggling company and then immediately lower their potential revenues (and therefore the company's value) by restricting the platforms they are allowed to sell to. That just doesn't make any business sense. Maybe MS or Sony would be interested in buying individual properties, but not the whole company.
 
I know it's en vogue to ridicule Rare and MS's purchase of Rare, but the ridicule is not entirely warranted. Rare has made some good games for MS platforms. Were all of them good? No. Were they worth $500 million? No. But the platform is stronger as a result of Rare and they're continuing to make mostly good games. They're certainly not the megaton that they were alledged to be, but so what?

I think people are judging RARE a little too early in the game, granted PD0 was shite. But Kameo was a good solid game, and Viva Pinata was a good game, and though it didn't sell well it wasn't really intended to.

Banjo Kazooie is probably RARE's moment to really put up or shut up, it's one of their most popular games, and should be the first big commercial success for them on the 360.

I can't believe they paid so much for them though, $375 million, you could secure and fund ALOT of 3rd party exclusive with that kind of coin.
 
I think people are judging RARE a little too early in the game, granted PD0 was shite. But Kameo was a good solid game, and Viva Pinata was a good game, and though it didn't sell well it wasn't really intended to.

Banjo Kazooie is probably RARE's moment to really put up or shut up, it's one of their most popular games, and should be the first big commercial success for them on the 360.

I can't believe they paid so much for them though, $375 million, you could secure and fund ALOT of 3rd party exclusive with that kind of coin.





I'm waiting for Killer Instinct 3…
 
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