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About Take-Two Interactive Software, Inc.

Crime might not pay in the real world, but in the gaming universe it means big money for Take-Two. The company's popular mature-rated Grand Theft Auto series and other games are developed by subsidiary Rockstar Games. Its 2K Games subsidiary publishes franchises such as BioShock, Borderlands, and Sid Meier's Civilization; the 2K Sports unit carries titles such as Major League Baseball 2K and NBA 2K. Take-Two's games are played on Microsoft, Sony, and Nintendo game consoles, but also on PCs and handheld devices. Its products are sold through outlets including retail chains, such as GameStop and Steam, and as digital downloads. Nearly 60% of its sales comes from the US.

Operations

Take-Two's Rockstar Games subsidiary is aptly named, having racked up sales, game-of-the-year awards, and controversy to back up the moniker. Focused on hardcore action games, its other titles alongside golden child GTA include open-world racing game Midnight Club, the Wild West-themed Red Dead series, 1940s-era action-detective game L.A. Noire, and gritty action shooter Max Payne.

Although sister company 2K Games doesn't have as unruly a reputation, it still maintains the action focus of the group. The NBA 2K series is one of the company's top sellers. While intense titles geared toward adults and seasoned gamers have been Take-Two's bread and butter, it hedges its bets by also pursuing projects that appeal to children and casual gamers. As part of that push Take-Two established the 2K Play label for its casual gaming and family-oriented efforts, offering titles such as BioShock, Mafia, and Sid Meier's Civilization.

About 75% of the company's revenue comes from console games. Games for PCs and other devices account for the remaining revenue.

Geographic Reach

Take-Two is based in New York City and gets more than 55% of its sales from customers in the US with international customers supplying the rest. The company's subsidiaries Rockstar North in located in Edinburgh while 2K's corporate office is in Novato, California.

The company operates development studios and sales operations around the world.

Sales and Marketing

The company sells software titles both physically and digitally through direct relationships with large retail customers, including digital storefronts and platform partners, and third-party distributors. The company's top customers include Sony, Microsoft, Steam, GameStop, and Epic globally. Sales to its five largest customers accounted for more than 70%, with Sony and Microsoft each accounting for more than 10%.

The company's products delivered through digital online services (digital download, online platforms, and cloud streaming) accounts for nearly 80% of sales and physical retail and other account for more than 20%.

Advertising, marketing, and other promotional expenses for the fiscal years ended March 31, 2020, 2019 and 2018 amounted to $285,607, $249,315 and $140,618, respectively.

Financial Performance

Take-Two's revenue has been rising in the last five years, with an overall growth of $1.7 billion, or 119% between 2016 and 2020.

For the fiscal year ended March 31, 2020, Take-Two's net revenue increased by $420.6 million to $3.1 billion, as compared to the prior year. The increase was due primarily to $371.8 million in net revenue from Borderlands 3, which released in September 2019.

For the year ended 2020, the company had a net income of $404.5 million, a 21% increase compared to the previous year. The growth is primarily due to a higher sales volume for the year.

The company's cash for the year ended 2020 amounted to $2 billion. Operating activities generated $685.7 million, while financing activities used $77.5 million, mainly for tax payment related to net share settlements. Investing activities generated another $4 million.

Strategy

Take-Two's core strategy is to capitalize on the popularity of video games by developing and publishing high-quality interactive entertainment experiences across a range of genres. The company focuses on building compelling entertainment franchises by publishing a select number of titles for which we can create sequels and incremental revenue opportunities through virtual currency, add-on content, and in-game purchases. The company has established a portfolio of proprietary software content for the major hardware platforms in a wide range of genres, including action, adventure, family/casual, racing, role-playing, shooter, sports and strategy, which it distributes worldwide.

Mergers and Acquisitions

In November 2020, Take-Two Interactive Software agreed to acquire Codemasters, the UK-based game publisher and developer for approximately £759 million ($994 million). The acquisition is anticipated to be completed in the first quarter of calendar 2021.Take-Two believes that the combination of Take-Two and Codemasters would bring together two world-class interactive entertainment portfolios.

Company Background

Take-Two exited the third-party distribution business in 2010.

Take-Two Interactive Software, Inc.

110 W 44th St
New York, NY 10036-4011
Phone: 1 (646) 536-2842

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: TTWO
Stock Exchange: , NASDAQ
Network Operations Engineer: Christopher Silagy
President: Karl Slatoff
Chairman and CEO: Strauss Zelnick
Employees (This Location): 148
Employees (All Locations): 5,800

Major Office Locations

New York, NY

Other Locations

Corona Del Mar, CA
Novato, CA
Las Vegas, NV
Martintown, Canada
Mississauga, Canada
Moscow, Russia