Who says crime doesn’t pay?
Video game publisher Take-Two Interactive Systems posted jaw-dropping (in a good way) earnings today due to higher-than-expected sales of Grand Theft Auto IV.
Sales of Grand Theft Auto IV have generated over $500 million in revenue for Take-Two since its April 29 debut. The release was posptoned for six months but it appears the delay did not phase sales in the least bit. The game has sold approximately six million units, half of which were sold on the first day.
Take-Two reported profits of $98.2 million versus a loss of over $50 million for the same quarter last year. The huge swing to a profit can be attributed to a whopping 160% increase in sales.
Take-Two has been an unwilling buyout target of Electronic Arts, publisher of Madden NFL and NBA Live.
Shares of Take-Two closed at $27.65, which is about a $2 per share premium to EA’s offer. No doubt Take-Two will use today’s earnings surprise as fuel for a higher bid.
Related Stories
POSTED IN: Acquisitions, Earnings, Market, News, Technology, Uncategorized
1 opinion for Who says crime doesn’t pay?
Cynthia Lee
Jun 13, 2008 at 1:53 pm
A part of me feels that our hard earned money shouldn’t be going to such frivolous things such as video games, but I’d be remiss to deny congratulations to Take-Two for their 160% increase in sales in just one year. I wonder what 2009 will bring for them.. game time.
Have an opinion? Leave a comment: