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Your email address will not be published.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 520: Excelsior!Episode 520: Excelsior!

The news cycle has begun to explode, as the holiday season looms and Black Friday in sight. Jonah and TJ get into a heated argument about Destiny 2, to liven up the proceedings after the bummer of Stan Lee’s death.

This week’s news include:

  • Obsidian and inXile join Microsoft Studios
  • Stan Lee dies at 95
  • Destiny 2 director assures players Bungie is “not disappointed” with Forsaken

The Question of the Week is indeed “How would you fix Destiny 2?”

Episode 687: Nintendo DirectedEpisode 687: Nintendo Directed

This week’s episode revolves around the Nintendo Direct presentation. The guys also mock PlayStation fans and Geoff Keighley, and discuss Callisto Protocol and Vampire Survivors.

Aside from the Nintendo Direct, the news includes:

  • Microsoft says it’s officially done making new Xbox One games
  • Xenonauts 2 will invade our world this July
  • Respawn worked on Titanfall 3 for 10 Months

There is also some Listener feedback.

Episode 482: NaptimeEpisode 482: Naptime

This particular episode becomes a little sleepy as one host actually falls asleep during recording. Guess which one. After last week’s episode only partially uploaded, the Gaming Flashback for Okami is actually an insert, too.

The news items include:

  • It’s a big week for new game releases on Switch, PS4, Xbox One, and PC
  • Lego Dimensions comes to an early end after two years
  • Why Xbox One backward compatibility took so long
  • Ex-BioWare says Anthem is an example of EA’s monetization plans

Let us know what you think — without falling asleep first.