Take-Two's Further Financial Woes

Next Generation reports that already beleaguered publisher Take-Two is now facing a lawsuit from a stockholder. The person bringing the suit claims the company has engaged in misleading tactics, insider trading, and inaccurate reporting. GameDailyBiz is also reporting that Elevated Partners are considering a buyout. These latest revelations may put the kibosh on that plan, though. From that article: "So will Elevation go for it anyway? Stranger things have happened, and the GTA franchise would certainly be a very valuable property. Furthermore, as the Post points out, Elevation doesn't seem to be afraid of investing in troubled companies. Just recently, the firm spent $100 million for part of Homestore.com even though several former Homestore executives were indicted for multimillion dollar fraud."

Comments

Don't the "woes" make buyout more likely?

[Babbster]

I would think so since shareholders would be more willing to get rid of their shares for fear that the stock will take a tumble. Not to mention the fact that new ownership can take the "we didn't do it, we're cleaning it up" tack when dealing with the SEC and other government agencies.

Besides, with Bono on board, maybe we can finally get the oft-requested "GTA: Mogadishu"!

Grand Theft Auto 4

[imsoclever]

On a positive note, Take Two is going to use this as inspiration for the next iteration of the Grand Theft Auto franchise. In GTA4, gamers will assume the role of a thug from the streets who will take part in such illicit activities as insider trading and innacurate reporting.

Contrary to poster

[Karem Lore]

This is a great time to buy...The buying company agrees to pay off the lawsuits (explaining that new management would be part of the deal) for Take Two (who may not have the cash) and take over Take Two at a reduced price for bailing Take Two out. Thereby closing the lawsuits and Take Two board keeping their jobs (for the time being) or being paid off. The buying company therefore makes a clean break, keeps the GTA name alive and rakes in profit from Bethesda's Oblivion and continuation of GTA (and other titles).

Good time to act is now, and it would increase the share value of the buying company (and therefore, invariably, that of Take Two under the guise of the new company).