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Your email address will not be published.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 420: Light It UpEpisode 420: Light It Up

The number of the episode does not escape notice from the podcast crew, especially a week before April 20. Aside from that, much is made of the release of Dark Souls III, which T.J. Denzer enthusiastically enjoys. The despicable firing of Alison Rapp is also noted from the unaired podcast recorded last week.

This week’s news includes:

  • Former head of Rockstar North sues developer, alleges $150M in unpaid royalties
  • Oculus apologizes for Rift shipment delay, taking steps to speed delivery
  • The Nintendo NX might include Wii U ports
  • Forbes claims Nintendo NX will likely output 4K

Let us know what you think!

Episode 683: Super Mega Podcast 4Episode 683: Super Mega Podcast 4

This week we discuss Bungie lawsuits, the Street Fighter 6 World Tour, a Stardew Valley clone featuring serial killers, and Fortnite as an Olypmic esport.

The news of the week includes:

  • Nintendo seems to have fired back over the Tears of the Kingdom leak by DMCAing popular Switch emulation tools
  • Finnish newspaper uses Counter-Strike to provide accurate Russian reporting on Ukraine invasion
  • Apple Arcade adds 20 games
  • Marvel’s Midnight Suns landing on Xbox One and PS4 next week, Switch canceled
  • Super Mega Baseball 4 launches in June

Let us know what you think.