EA and Take-Two Stock Falls Fast

It’s official, EA has given up their talks with Take-Two and, as a result, the stock of both companies is falling like a stone. While gamers may cheer knowing the Grand Theft Auto and 2K Sports product lines will continue to compete with EA products, share holders are doing a WTF?

Take-Two has had its share of financial difficulties, but nothing shakes up a stock more than a break in discussions when the words acquisition have been spoken. It causes uncertainty and lack of understanding on the part of the game industry and share holders. EA’s stock dropped 2.7% upon opening this morning but has begun to stablize as it’s clear EA isn’t in any financial peril from this breakup in discussion.

Take-Two’s stock, however, is in epic free fall with a 25% decline since the discussions ended. One theory is that, “is taking a huge beating as everyone and their mother tries desperately to sell the shares the figured EA was going to to buy.” (kotaku)

As the game industry gets more competitive, builds bigger bank-roll and becomes a staple entertainment icon there is always more business savvy people getting into the game trying to make a fast buck. In this case, the shareholders obviously aren’t pushing for Take-Two’s future decisions or product launches — this is the reaction of business folks trying to make money.

There is huge risk with block buster 100-million dollar titles and all the crazy hype involved with some of the biggest games in history. They break sales records, smoke box-office numbers and bring new gamers into the industry but it’s all at risk when money gets involved. One bad move and a company making a title like GTA can find themselves in financial peril.

With risk comes reward, but failure is always sneaking up around the corner so watch out!

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 461: Messy Effect: AndromedaEpisode 461: Messy Effect: Andromeda

This week’s episode, which has been posted a little late due to life interruptions, has Jonah ranting about Mass Effect Andromeda, which T.J. and Scott pine for The Legend of Zelda: Breath of the Wind.

This week’s news includes:

  • Report: JoyCon wireless issues caused by “manufacturing variation”
  • There is a way to transfer Switch save data, Nintendo just doesn’t want you to know
  • Alexander the Great will lead Macedon in Civilization 6

Let us know what you think.

Episode 283: A Little LateEpisode 283: A Little Late

This week’s podcast was delayed when the original recording didn’t take and had to go with Dan Quick’s backup. Otherwise, the Gaming Flashback this week is the supremely weird Master Chu and the Drunkard Hu.

The other news items include:

The Question of the Week is, “What was the game with the worst title you’ve ever played?”