Rumor: sony in talks to acquire take-two interactive

Jan 31, 2018
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MS has made some big ass acquisitions:

Github - 7.5B
Linkedin - 26B
Mojang - 2.5B
Nokia - 8.5B

I do see a lot of consolidation going forward, both in the game and movie industry.
Yea but that was back then. I think what they are looking for right now doesn't include owners of developers. I'm not saying they couldn't do it. Just that they aren't looking to grow in this way right now.
 
Feb 11, 2019
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Maybe there’s something going on behind the scenes, would be a smart move by SONY if true.
Sell high, they probably missed the very high point in the Fall.

TTwo generates a good portion of their money from GTA and now RDR over the last 7-8 years, yes they have publishing but if they were to ever strikeout on one of those releases the stock is going to take a pounding. They're basically a $10b company but most it is coming from now just two games, generally speaking.

The company's business is largely console-centric and, at least for now, depends on full game sales for the bulk of its revenue. However, as Red Dead Redemption 2 sales eventually slow, the company's business mix should shift more toward recurrent consumer spending until its next blockbuster release (potentially Grand Theft Auto VI).
This article touches on the non-smooth earnings, there is some recurring revenue though.
https://www.fool.com/investing/2019/02/27/heres-how-take-two-interactive-makes-its-money.aspx
 
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Likes: GoldenEye98
Feb 6, 2018
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And lets say Microsoft was a real suitor between the 2, is Microsoft the one you want to manage all these new studios? That on top of all the others they've acquired, could they absorb that many developers and studios and not make a mess of things in such a short amount of time? Do sea of thieves, state of decay, recore, and crackdown 3 not give us any insight into the management style and quality control of Microsoft properties?
MS could easily outbid SONY. So if they offer a couple of billion more; it's a no brainer.

Don't see it happening though.
 

Afro Republican

GAF>INTERNET>GAF, BITCHES
Aug 24, 2016
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Even for MS or Nintendo this would be a bad deal, you end up paying a lot upfront, during the transition, and the development marketing phase, putting any of the 3 console makers in deep red, and by making them exclusive you lose 2/3rds of the profit and revenue of their games. Even worse for Nintendo.

There's no actual benefit to buying take two for any console manufacturer.
 
Nov 25, 2015
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Even for MS or Nintendo this would be a bad deal, you end up paying a lot upfront, during the transition, and the development marketing phase, putting any of the 3 console makers in deep red, and by making them exclusive you lose 2/3rds of the profit and revenue of their games. Even worse for Nintendo.

There's no actual benefit to buying take two for any console manufacturer.
On the other hand with Google jumping into the console biz this could be a move to stay relevant. Things could get shaken up big time with the upcoming streaming wars.
 
Likes: Negotiator

Afro Republican

GAF>INTERNET>GAF, BITCHES
Aug 24, 2016
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On the other hand with Google jumping into the console biz this could be a move to stay relevant. Things could get shaken up big time with the upcoming streaming wars.
The loss-loss issue would still apply, even more so because now you don't have the retail audience and ONLY the digital audience. Most companies will also want to put out cross-play games on streamers as well, I doubt EA is going to go for one streaming device if it ever becomes a thing.
 
Nov 25, 2015
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The loss-loss issue would still apply, even more so because now you don't have the retail audience and ONLY the digital audience. Most companies will also want to put out cross-play games on streamers as well, I doubt EA is going to go for one streaming device if it ever becomes a thing.
Yeah, but they can afford the loss. It just depends on how bad they want it.
 

GoldenEye98

posts news as their odd job
Jan 7, 2018
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Sell high, they probably missed the very high point in the Fall.

TTwo generates a good portion of their money from GTA and now RDR over the last 7-8 years, yes they have publishing but if they were to ever strikeout on one of those releases the stock is going to take a pounding. They're basically a $10b company but most it is coming from now just two games, generally speaking.


This article touches on the non-smooth earnings, there is some recurring revenue though.
https://www.fool.com/investing/2019/02/27/heres-how-take-two-interactive-makes-its-money.aspx
To me if you are buying Take Two you are essentially betting on GTA 6 and the GTA franchise's future. GTA V made a shit tonne of money...but that was on multiple platforms.
 
Likes: DanielsM
Sep 19, 2015
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Yea but that was back then. I think what they are looking for right now doesn't include owners of developers. I'm not saying they couldn't do it. Just that they aren't looking to grow in this way right now.
If Google and the rest of FAANG get serious about gaming, MS will allocate way more capital to it, which would include the acquisition of developers and publishers.
 
Likes: Jigsaah
Feb 11, 2019
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To me if you are buying Take Two you are essentially betting on GTA 6 and the GTA franchise's future. GTA V made a shit tonne of money...but that was on multiple platforms.
Absolutely. Which makes me think there is something to the rumor, maybe not Sony but them looking for offers. Basically, hit full throttle in the Fall with RDR2, and now the cash starts to disappear until the next GTA. I'm not sure what other IPs they own Bioshock, Civilization, etc. but it really comes down to GTA and RDR right now like you said - its a huge gamble on GTA.
 
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Jul 30, 2018
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London, UK & Kailua, HI.
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Nov 25, 2015
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this - the hypocrisy on here over the years is astounding.
Problem is your picking and choosing your posts. If you look through my history for example you’ll see I was hoping MS would acquire EA to add to their own portfolio.

This would also be a good shakeup move.
Exclusives are important.
 
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Absolutely. Which makes me think there is something to the rumor, maybe not Sony but them looking for offers. Basically, hit full throttle in the Fall with RDR2, and now the cash starts to disappear until the next GTA. I'm not sure what other IPs they own Bioshock, Civilization, etc. but it really comes down to GTA and RDR right now like you said - its a huge gamble on GTA.
The 2k Sports titles do pretty well, and make a pretty good dent with micro-transactions as well.
 
Mar 12, 2015
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To me if you are buying Take Two you are essentially betting on GTA 6 and the GTA franchise's future. GTA V made a shit tonne of money...but that was on multiple platforms.
GTAVI would be a system seller like none we've seen before. If Sony DOES buy Take Two, and they choose to publish all Take Two games exclusively on Playstation, there is no way they're gonna be hurting. Playstation 5s would be flying off the shelf if people knew the only place to play Grand Theft Auto 6 EVER would be the Playstation 5. It'd be a super shitty situation for Xbox and Google to find themselves in, that's for sure. I'm no expert on market dynamics or whatever, but I'd probably put money on Sony being the market leader for next generation hands down should this rumor spread, even if it just stays a rumor. Get enough people just thinking that GTAVI may be exclusive to PS5 and they won't be able to keep them stocked.
 
May 3, 2018
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GTAVI would be a system seller like none we've seen before. If Sony DOES buy Take Two, and they choose to publish all Take Two games exclusively on Playstation, there is no way they're gonna be hurting. Playstation 5s would be flying off the shelf if people knew the only place to play Grand Theft Auto 6 EVER would be the Playstation 5. It'd be a super shitty situation for Xbox and Google to find themselves in, that's for sure. I'm no expert on market dynamics or whatever, but I'd probably put money on Sony being the market leader for next generation hands down should this rumor spread, even if it just stays a rumor. Get enough people just thinking that GTAVI may be exclusive to PS5 and they won't be able to keep them stocked.
Would never happen.

I personally don't think Sony cares about it being a system seller if they have GTAVI on all platforms they'll make far more money especially with Gta microtransactions.


The only thing Sony would do is have the odd exclusive content that's it. Being fully exclusive will never happen.
 
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Likes: Dabaus
Nov 4, 2018
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Number one reason I wouldn’t want this to happen:

- Sony potentially force-censoring Rockstar games. Fuck that shit.
also there are so many other smaller studios that sony could acquire. i dont see why would they jump to something that big. wouldnt make sense.
they said they dont want to get that much bigger.

they could buy level 5, insomniac, from software, and a few others and it would be cheaper than half of what it would cost to buy take two.
 
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Nov 4, 2018
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https://www.marketwatch.com/story/s...er-pressure-amid-boeing-737-8-woes-2019-03-13

Scroll down a bit



This could be massive news if true. That would mean Rockstar would be all Sony again right?

Jeez, even Take Two knows that no one wants a fucking Xbox

while am not trying to console war . microsoft has shown no interest in supporting console gaming. and personally as long as console gaming stays alive is ideal for me to play so am not a fan of MS. console gaming is where its at
 
Feb 11, 2019
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This actually isn't possible. Sony doesn't have the money for this to work, it would be a quick end to the company.

The stock would end up at Hmny levels in a few days.
What? (hint, this has already been answered in the thread)

(I'm going with no, or TTwo is looking for buyer but yes they have enough money)
 
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Oct 10, 2018
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www.kickstarter.com
What? (hint, this has already been answered in the thread)

(I'm going with no, or TTwo is looking for buyer but yes they have enough money)
No they do not have enough money to handle the purchase, the financial aspect doesn't end until TT is fully absorbed, that's more than the $10-15 billion needed to just by the studio on the surface, they cannot afford to maintain and operate the studio. They dont have a cash source to back that up.
 
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Feb 11, 2019
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No they do not have enough money to handle the purchase, the financial aspect doesn't end until TT is fully absorbed, that's more than the $10-15 billion needed to just by the studio on the surface, they cannot afford to maintain and operate the studio. They dont have a cash source to back that up.
1. Deals are not always all cash, it can be an all stock deal, depends on the deal.
2. Even if it was all cash, and Sony paid the $130 stock price, $13-14b, they probably have enough cash for that, total cash looks like north of $20b, depending on the wording of cash on hand. Could do partial, 70% cash, 30% stock.

Again, I'm going with unlikely but yes, in theory they have enough at these levels on the surface.
 
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Nov 25, 2015
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No they do not have enough money to handle the purchase, the financial aspect doesn't end until TT is fully absorbed, that's more than the $10-15 billion needed to just by the studio on the surface, they cannot afford to maintain and operate the studio. They dont have a cash source to back that up.
It’s already been said they have over 20 billion in cash. They can also use stock which is how Disney was able to afford Fox.