After months of fruitless discussions with EA over a potential buyout, followed by a brief period of examining their other options, Take-Two Interactive has decided to remain an independent company.
Despite the publisher’s stock dropping a brutal five percent after the EA acquisition deal fell through, CEO, Ben Feder, remains confident that the company can continue to be profitable on its own. Noting that Take-Two has a “strong cash position” and an “undrawn USD140 million credit facility,” Feder believes that they will be capable of producing strong returns for their investors.
Well, it’s good that they aren’t in debt but I wouldn’t necessarily trumpet corporate credit as a safety net in the current economic climate. The way things have been going lately, the net could very well not be there when they need it. But, for the time being at least, it seems Take-Two is determined to forge ahead alone.
Like Kane in Kung-Fu, but without all that needless eastern mysticism. Press release after the jump.
New York, NY – October 2, 2008 – Take-Two Interactive Software, Inc. (NASDAQ:TTWO) announced today that it has completed its review of strategic alternatives for the Company.
Following detailed discussions with various interested parties over the last five months, Take-Two’s Board of Directors has determined that it is in the best interests of stockholders to conclude its review of strategic alternatives and to continue operating and building Take-Two as an independent company.
“Take-Two’s Board of Directors and management have a clear mandate from stockholders to maximize value,” said Strauss Zelnick, Chairman of the Board of Take-Two. “We are strongly positioned creatively, financially and competitively to benefit from the opportunities we see in the fastest growing segment of the entertainment industry. Our management and outstanding and talented employees have maintained an unwavering focus on our products and our business through this lengthy strategic review process and we are confident in our prospects. We remain focused on maximizing value for stockholders and are executing on our business strategies in a determined manner.”
Ben Feder, Chief Executive Officer of Take-Two added, “Take-Two’s recent performance demonstrates our potential to create value for the long term. We have delivered solid financial results and expanded our portfolio of leading titles, which includes the powerful Grand Theft Auto franchise, as well as 15 other wholly owned brands with sales of more than one million units each. Our strong cash position – with no debt and an undrawn $140 million credit facility – gives us the financial flexibility to continue to do what we do best: innovate and create the great games that our customers have come to expect.”