‘One-Hit Wonder’ Take-Two Interactive Decides to Diversify
Posted by Natalie Shoemaker on 08.31.2009
Take-Two has spent a long time riding the coat-tails of Grand Theft Auto, but they may be getting ready to diversify.
The controversial franchise Grand Theft Auto has not only sold 80 million units to date, but it has also been keeping Take-Two Interactive out of the frying pan (financially that is). The GTA series alone made up 46% of the company's net revenue. Adding to this year's profit will be yet another GTA IV expansion.
But hope is here for the 2010 year. Take-Two has a line-up of potential blockbusters that may get rid of the Grand Theft Auto crutch they've been leaning on: Borderlands, Agent, Red Dead Redemption, Mafia II, and Max Payne 3
"While we do subscribe to the belief that shares of Take-Two will likely be meaningfully higher once there is at least some clarity on the release timing of the next GTA, we also believe currently it is too early for that trade," wrote Arvind Bhatia of Sterne Agee in a note Tuesday. "History suggests the release of a GTA title almost always tends to be later than investors initially expect."
